Finish Flags waving in gold and silver…

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.

Leave a Reply