Friday’s jobs number was a disaster as was the drop in the employment number which indicates no job growth and many giving up and not looking. After the news hit Gold and Silver bounced while Platinum remained under pressure.
The bounce was weak with no action and looks to be a simple bounce from oversold conditions. The trend remains down indicating more pressure coming to the metals markets. Traders should be selling rallies until proven otherwise; there will be excitement which should quickly fail.
We remain short paper gold while still purchasing physical. We must remember in markets there are investments and there are trades, the two should never meet. We will always have a bullish posture and position in physical, we will trade the paper according to our algorithm which is short.
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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