BY BILL GRIFFO
February 18, 2026
Hey Income Hunters,
China’s mainland markets shut down for Lunar New Year and don’t fully return until Tuesday, February 24, 2026 — which means 7 straight trading days where volatility in precious metals may spike,
That’s not just a calendar note. It’s a liquidity event.
When the world’s biggest physical metals hub steps away, trading shifts even more to the paper-heavy venues in London and New York — and in thin conditions, small orders can create big moves.
This presents investors with excellent short-term entry points into the highest probability moves in the medium term.
Market Closures That Matter
- Mainland China: Closed Feb 16–23, reopen Feb 24
- Hong Kong (HKEX): Half-day Feb 16, closed Feb 17–19, reopens Feb 20
- Singapore (SGX): Closed Feb 17–18
- U.S. markets: Closed Feb 16 (Presidents Day), then it’s “all U.S., all the time” while Asia is partially offline
Without China Gold & Silver May Hit an “air-pocket”
Even if you ignore all the drama, China is still the center of gravity for physical precious metals demand.
And importantly: China’s central bank has been adding gold for 15 straight months, including an increase reported for January 2026.
So when China steps away for a holiday, the physical bid depth disappears, spreads widen, and price can get pushed around more easily in Western hours.
Translation:
This week can produce a nasty shakeout drop… and if it does investors should consider it a GIFT!
Watch Gold Carefully
What “opportunity” looks like for U.S. investors
Here’s the simple, practical setup:
1) Expect wider ranges (not just “volatility”)
Thin liquidity often shows up as:
- sudden downdrafts
- stop-run candles
- gap-like moves during quiet hours
- exaggerated reactions to fundamental data
2) A likely pattern: early-week slippage → late-week snapback
Because Hong Kong comes back online Feb 20 (a partial “Asia returns” signal) before China reopens Feb 24.
If you’re a long-term investor, weakness caused by a liquidity vacuum is often an entry window, not a thesis-breaker.
Road map: how to navigate Feb 17–24 without getting chopped up
Step 1 — Don’t confuse “holiday liquidity” with “fundamentals”
If gold/silver drop, ask:
- Was it driven by real macro news?
- Or just thin tape + forced flows?
Step 2 — Use levels + sizing, not predictions
A clean approach for many investors:
- Keep core physical / long-term positions unchanged
- Add only on disorderly dips
- If you trade, cut size and avoid “hero” leverage
Step 3 — Watch these signposts each day
- Gold vs silver behavior (silver often exaggerates both directions)
- Miners vs metal (miners moves can give you a headstart)
- Hong Kong reopen reaction (Feb 20): does Asia confirm or fade the Western move?
- China reopen (Feb 24): the real vote returns.
Portfolio positioning: what long-term investors should consider
If you’ve been with Power Income, you know the recurring theme:
- Volatility is not the enemy — poor positioning is.
- Use these liquidity windows to rebalance intentionally, not emotionally.
A sensible long-term allocation thought process:
- Maintain hard-asset anchors (gold/silver exposure sized for sleep-at-night)
- Keep dry powder (T-bills/cash equivalents) for volatility-created entries
- If you want tactical exposure, consider defined-risk structures (options) rather than max-pain leverage
The punchline
For the next week, China is largely out — and that means U.S. markets can get pushy, sloppy, and fast.
If gold and silver sag because the world’s biggest physical buyer is at the dinner table instead of the trading desk… that can create exactly the kind of asymmetric opportunity long-term investors wait for.
Stay sharp, size smart, and let the market come to you.
Live and Trade With Passion My Friends,
Bill Griffo
Bill Griffo
Head Income Trader
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