US stocks rallied to new highs on the year yesterday, but could not hold it.
Listening to the news yesterday, one would have thought that the Dow had hit 20K. Unfortunately for stocks, we are now in ‘Sell in May and go away’. However, being an election year, we are not sure that is the thing to do.
Gold and Silver keep trying to rally, but the volume falls off after a few days and the rally peters out. We have closed out our short metals positions, ($44 to $30.40 on silver and 1844 to1650 on gold) and are looking for the market to tell us what to do next. We were looking for 1450-1180 on gold and less than $20 on silver, however time has not allowed those prices.
On a weekly close below 1570 and 27.50 we will resume our short positions. On a weekly close above 1800 and 36.00 we will be long with tight stops.