Now that the FED has spoken, all expectations for Gold to take off to the upside has ended. The sellers have taken control and overpowered the bulls. Blame it on the FED, but that doesn’t matter. The facts are the trend has changed and prices are headed lower.
The Central Banking system is nothing more than a legalized Ponzi scheme. If you are not sure of that statement look up Ponzi, which is borrow new money to satisfy old debt. That is exactly what the FED and other Central Banks around the globe are doing. There actions have created pressure on metals.
We are now short Gold, Silver and would be short Platinum if we traded it. However, this trading position has no effect on our long-term physical position. In fact we will use what could be a much bigger sell off where we will be short paper gold as an opportunity to add to our physical position.
In all markets price action determines what will happen in the next day, week, or months. Keep the two strategies separate, the worst trade anyone can make is turning a trade into an investment hoping for a way out. Traders must learn to take their losses and move on to the next trade.
Patience, discipline, and money management always win the day. Let the map of the markets show you the way.
Todd Horwitz Chief Strategist BubbaTrading.com
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