You can’t get much clearer flags than those flying in gold and silver today. Virtually perfect formations. So what do you do when you have a lead pipe cinch? Bet the ranch?
Maybe the outhouse, but not the ranch. And besides that, which way, long or short?
Ironically a flag is more likely a temporary top than a continuation. Here are ways to play it: You can take profits and short it immediately. The stop would be 1/2% above the high. While it is unlikely that further explosive upside will result a smarter way might be to place a tight stop under the last day, say 1/2% under the low. Each day, if the price rises, place a similar stop. Conservative traders would wait for the gap to be closed before shorting.
As for us we’ll reverse on Monday, taking some fairly decent profits.