The FED does it again, more ridiculous policy decisions that took the wind out of Gold and Silver. Wednesday before the FOMC decision on interest rates Gold and Silver were rallying, trying to reverse the extended down trend they have been in. By the end of the day, they were lower and seeing follow through this morning.
We remain short and can now make lower projections on our next targets. Silver appears to be headed for yearly lows below 22.00 while Gold looks primed to take out the flash crash lows. The price action continues to be weak and we see no reason for the pattern to change here.
On the other hand, this does look like a good time to start buying physical metals. Gold, Silver and Platinum are attractive as long term holds in physical only. Paper metals are only good for trading. We believe the paper gold which includes futures, ETF’s and others are oversubscribed.
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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