Gold and Silver collapse 10%

XAU/USD

Gold initially rose as expected for a new all time high at 5594.

This is what I wrote yesterday: ''I am a trend follower and this strategy has kept us long in Gold for the whole move, while most other retail traders are trying to pick a top in the market & adding to the short squeeze conditions. However this parabolic move cannot be sustainable.''

''It feels like the last desperate buyers or shorts getting squeezed out before an inevitable collapse.''

''But to pick a top would be incredibly foolish - this market could continue higher & there's definitely no sell signal.''

Although my gut instincts were telling me that there could be a significant correction, there was no way I could suggest a short position, without a sell signal.

Even with hindsight I don't regret that, despite getting the call right and seeing gold collapse 10% very quickly.

I never break my trading rules. I never guess or gamble.

But I'm very happy that I warned you about the potential move to the downside & I hope I saved you from a serious loss.

I know that many of my subscribers have more faith in my signals than I do and I know some of you did get into very profitable short positions.

Well done to you!!!

I have to say that even my own buy level amazed me: ''Any sell off today meets support at 5110/5080 & longs need stops below 5030.''

Despite the violent and unprecedented moves in gold yesterday I managed to catch the exact low with my single trade idea for the day.

Gold immediately jumped $340 for a huge potential profit on this trade.

We have done phenomenally well in recent days and weeks, trading gold and silver, following the trend all the way up, until yesterday when I warned you that the market could turn and it did.

Now is not the time to be greedy. We could be entering a period of severe volatility if the bull run has ended as I suspect.

We will not know for a short while as I wait to see what patterns & signals develop.

Today is not the day to be trading gold. It's a day to sit and wait, especially as it is a Friday.

It would be incredibly foolish to blow any of our huge profits on guessing and gambling today - It would certainly ruin my weekend and I don't want it to ruin yours.

I strongly suggest you pat yourself on the back, bank the profits and enjoy your weekend.

However if you insist on trading I will do my best as always.

There's a good chance that we hold within yesterday's 10% range & within this range I have no idea what trades to attempt.

However on a break above 5600, next targets are 5731/35, 5765/70, 5795/99, 5820/22.

If we continue higher look for 5838/41 & even 5880/5890 is possible.

There could be support again at 5110/5080 & longs need stops below 5030, although please note I am less confident that this level will hold today, so bear this risk in mind.

A break below 5030 further losses to 4990 & 4950/4930.

It should be worth attempting a long position here with a stop loss placed below 4880.

XAG/USD

Silver longs we bought at 111.20/110.70 on Wednesday worked perfectly & the break above 117.69 triggered a new buy signal, targeting 119.80, 121.20, 122.20, 123.30, 124.90.

However we only reached 121.20, with a new all time high at 121.64.

On the 1st downside move, we made a low for the morning exactly at my first support at 116.10/115.50 & shot higher to my 121.20 target, for a potential 500 tick profit.

However silver then crashed below 114.50 which I said could trigger losses towards 107.00/106.00.

We were not too far off with a low for the day at 108.51.

Support at 110.00/109.50 today & longs need stops below 108.30.

Just be aware that a break lower can target a buying opportunity at 102.80/102.00 & longs need stops below 101.10.

Considering silver also traded in a 10% range yesterday, we may just hold within that range today and I really wouldn't have a strong trade idea inside of that volatile range.

WTI Crude March futures

Last session low & high: 6328 - 6648.

WTI Crude futures break above 6310 triggered a move to 6385/6395.

The break above 6480 was a buy signal to target 6620/6660 for profit taking on longs.

Guess where the high for the day was?

We caught it perfectly as prices reversed from 6648.

First support at 6410/6380 but longs need stops below 6335.

A break lower can target support at 6255/6220 & longs need stops below 6170.