Friday was triple witching expiration and markets sold off. This morning equities are under pressure again hinting at a trend change. One would think Gold and Silver would be charging higher however they are slightly higher and look to be rotating around the mean before heading lower.
The trend in Gold, Silver and Platinum remains lower, this morning’s action has done nothing to alter the trend. That does not mean the trend won’t reverse to higher, but the metals still look awful. Silver remains the weakest and is danger of breaking below 22.00.
Markets like these create many fear trades especially in metals. However, watching the early morning action, it appears that the sellers are still in control of metals. We will remain short until our algorithm switches, the trend is down, and we are short.
We don’t predict, create need or fear but report the facts of what we are doing and willing to do. Buying physical metals is never a bad idea as long as you don’t confuse the purchase as a short-term play. Physical metals are for holding, paper metals are for trading.
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
Stop being a prophet and make profits
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