Gold and Silver have finally broken above resistance and are now in an uptrend – can it continue? That is always the key question when trend trading – will the metals follow through? Will they stay in wide sweeping consolidation?
No one knows the answer 100%, based on the build up and breakout we would expect the rally to continue. We have reversed our positions this morning into this small sell off which was expected. Markets never go straight up or straight down without some mean reversion.
The biggest question with the metals is: Will the Good Friday holiday have any effect on the trading action? Volume has been pathetic, which makes aggressive trading a fool’s game. This has been an issue in all markets which leads us to believe we could see a major run here.
Commodities have been exploding along with inflation. Geopolitical issues along with a fraudulent Fiat currency system worldwide could be enough. However we must remember, everyone knows about this news – will the buyers have the power to keep pushing?
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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