Today the FOMC announces their decision on interest rates and tapering. There are many theories on what they may or may not do. We know the FED is clueless without common sense relying on 100-year-old models. The odds of the doing anything correct are remote, but even a broken clock is right twice a day.
With runaway inflation which is calculated in favor of the government, CPI and PPI are hot but hotter than reported. The exclusions from these reports are laughable. Gold, Silver and Platinum have been under pressure for the past few weeks tells us they are expecting a dramatic decision from the FED today.
The metals are weak and impending news will not be favorable in the short term. There is the potential for a hard sell off depending on what the FED does today. The target for Gold is 1450 on the downside however there are many levels that could prevent a sell off that big.
We must watch price without opinion and realize that some of what is expected could already be priced in. Keep your opinions out and trade paper, invest in physical. We are short and will remain there until the algorithm changes
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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