The FED strikes again, all markets meltdown except the U.S. Dollar. There were rumors that the FED would shift their opinions on monetary policy and could start to taper. The big question: Is this a test balloon to see market reaction? Will the FED give in to Wall Street?

While the Dollar exploded higher making two-month highs, Gold, Silver and Platinum got hammered. The route has continued this morning but is not as dramatic as it appears. Gold shows down over 50.00 but is only down about 6.00. This is a matter of floor closing versus electronic trading. The official close of Gold is 2:00 EDT, all the selling took place after that which gets counted on today’s prices.

The bottom line, it was an ugly day for Gold, Silver and Platinum. However, the selling did not trigger a sell signal in our algorithms. We remain long Gold and Silver, we would be short Platinum but due to lack of liquidity we do not trade it any longer.  Physical positions should not be affected by this action; we do not trade physical, we accumulate.

Gold and Silver are on the cusp of reversing to the short side, a lower close today will trigger a short. Obviously, this action is ugly and painful however, we will patiently wait for the signal change. Our signals are all mechanical with no room for opinions or emotions. There are times you must endure the pain not letting emotion, news, or opinions overwhelm calm rational thinking

Patience, discipline, and money management always win the day.

Todd Horwitz Chief Strategist
Stop being a prophet and make profits

Recording for our Monday Night Strategy Call with Andy Hecht below.

Monday Night Strategy Call Recording