Gold and silver stuck in quicksand

New York (Dec 18)  The metals continue to churn in a tight range while going nowhere. Gold and silver appear to be stuck in quicksand, which indicate a big move is on the horizon. The direction of the move is still undecided but is coming just the same.

Cases for a move in either direction can be made. The case for the bulls -- gold and silver have been holding support and are pushing hard to break out to the upside through resistance. Not to mention the general gold-investing population is naturally bullish.

The case for the bears is much easier -- the trend is lower and consolidating at lower levels. Our algorithms continue to be short; the metals are at resistance. In other words, we will stay short until the metals can prove that they can break out of this range. We expect a big move and a test of the lows until proven wrong.

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