Image Source: Pixabay

I bailed (again) on silver first thing on Friday morning. The reason is simple. Thursday night, I looked at the gold futures contract and immediately thought, “What were you thinking?” It didn’t even occur to me (until after hours) that there was a looming H&S top on gold. And if gold falls, obviously, silver will fall also.

I only had 50% of my intended position in silver, but I nervously watched it through the night. At the open, silver was down, but not much, so I got out completely. I don’t intend to go back for a while, because for weeks now, /SI has been banging out a series of lower highs. Not good.

The long-term (measured in years) picture is unchanged, but this does not seem like an opportune time to get in. I’m back into wait-and-see mode, and it’s going to take tremendous confidence on my part about the chart setup before I get back in again.

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