Yesterday’s sharp selloff may have been a fleeting event, we should know later today. Perhaps it was an overly aggressive gap fill, or maybe it was manufactured by a large institution. Whatever the case, as long as metals and miners remain above yesterday’s selloff lows, I’ll look to our early February targets. However, closing below yesterday’s lows would suggest an interim cycle top, and I’d sell 1/2 of my JNUG/USLV holdings.
I’ll feel better if gold rallies above $1,360 and silver recaptures $17.60.