Gold and silver are now below some critical levels and are in the process of heading lower. This brings us to the question: are gold and silver breaking down? It is not that simple, but would be “yes” for now and “no” for the future. In simple terms, we trade gold and silver as the trends change trying to benefit from short term movements. We hold physical metals for the long-term knowing they will appreciate.

Therefore, trading and investing are tough for many, separating the goals and expectations of what happens over the next week versus what we expect to happen over the next 10 years. If you can’t separate the two, you should not be attempting to do so as they run on different cycles.

Gold and silver are headed lower and violating key support levels; the keys to watch are 1800 gold and 2100 silver. We have been short gold since April 25th at 1907 and silver from 2361. We are sitting on large profits and looking for more, the trend is down.

We all must remember trends can change without notice and we could reverse at any time. However, we don’t try and time that move, the price action will tell us. Until further notice the price action is bearish and lower prices are coming.

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
Stop being a prophet and make profits

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2022-05-16 Monday Night Strategy Call