The torture chamber remains open, gold, silver, and platinum continue to consolidate looking for a spot to breakout. We know that they will have to eventually break out in one direction or the other, as it stands now, we assume that move to be lower.
For the past six weeks, while we have been short, we’ve continued to see gold test the tops and the bottoms of a range. From a technical standpoint, within the consolidation pattern, gold continues to make lower highs, giving more indication that the breakout will be to the downside.
Silver and platinum are in the same formation with a couple of exceptions. Silver’s range is getting tighter without giving a great indication of which way it will breakout. Platinum has been a little wilder in the trade, but has not violated the top or bottom of the range.
As we opened with, we are short, know that all of these markets will eventually break out in a direction and we don’t know with 100% certainty which way. Because our proprietary algorithm is short, we will lean to the short side until proven otherwise.
Todd Horwitz Chief Strategist BubbaTrading.com
Stop being a prophet and make profits
On Saturday September 12th we presented our Equity Portfolio models. Here is the recording from the event