As Gold pushes higher it has stayed on script, trading as expected. Tuesday’s pull back was met with buyers and this morning Gold is trying to break through the key level of 1900. Whether or not Gold breaks through 1900 today is not a big deal, the buyers are back.
When watching markets, you could have seen this move coming and it has nothing to do with the news, it started on a short squeeze, fear-based rally. What makes markets interesting – the reason it started a new trend is not important. It’s the strength in a rally or the weakness in a break.
Conspiracy theorists and those who continue to scream manipulation are proved wrong once again. Markets go through the price discovery process no matter the market. There must always be a buyer and a seller. It is interesting when equites break down, the high frequency traders are blamed, and when metals break its manipulation.
Until further notice we are long Gold, Silver and Platinum. We are expecting a much bigger mover to the upside with the next important level a solid close above 1900 Gold.
Precious metals should be owned on a physical basis with capital that is not needed tomorrow or anytime soon. Trading should be done with paper knowing that we can trade either side without emotions.
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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