Monday, we witnessed the fear, panic, and greed of traders with a dramatic spike in Silver. The initial rally was no surprise as the fear in traders and investors played out over the weekend getting themselves into a frenzy. The bears were worried about the squeeze and the bulls were worried about missing the monster up move. Early returns WSB is going to fail as we wrote about Monday.

We witnessed the panic buy and the emotional trading as we remained short because that is what our algorithm told us to do. We will reverse this morning and be long, not because of WSB but because the price action and trend have changed. As we repeatedly remind members and readers, we follow the rules of mechanical trading with no emotional discretion.

The squeeze that was going to be created by WSB could still happen but as we wrote yesterday, Silver is a commodity that is not like a stock making it harder to force action. This is one of the reasons we ignore chat rooms and the news, following them is a ticket to losing.

This morning as of 3:50 am EST Gold is down 16.20 and Silver down 1.64. This is a far cry from the big squeeze. We remain short Gold, long Platinum and now long Silver. Platinum is down about 30.00 this morning after failing to take out the highs on Monday.

Always remember, trade the news you lose, emotions and opinions have destroyed more traders and investors than anything else. Investors should ignore day to day movement while traders focus on the price action, which is the best map to the markets you will ever have.

Todd Horwitz Chief Strategist
Stop being a prophet and make profits

Last night on our Monday Night Strategy Call we talked in detail about Reddit’s WallStreetBets and why what they were attempting would fail. See recording below:

Recording: Monday Night Strategy Call Reddit’s WallStreetBets

We have also included a registration link for session 4 on Saturday February 6th at Noon EST:

2021-02-06 Options Training Session 4 Register here