Gold, Silver, and Platinum continue to trade in a malaise. All three remain stuck in a range and show all the makings of a large move. For now, we assume that move to be up. However, we can expect what we want eventually either the bears or the bulls will take charge.

Consolidation is a war between the bulls and the bears. Bulls buy them until the bears fightback and sell. This rotation can last for an extended period before breaking out. Look at the Russell index which has been consolidating for 10 months.

The longer and the tighter consolidation churns, the bigger the eventual breakout will be. All signs point higher the price action to the economic data. Many investors will become impatient and make a hasty decision which tends to be wrong. Remember, markets don’t announce themselves and a move will just show up.

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
Stop being a prophet and make profits

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2021-11-01 Monday Night Strategy Call