And there you have it, both gold and silver failed to take out resistance closing lower on the day Tuesday. You have just witnessed why we do not make emotional decisions during the trading day, but wait for markets to close, and then evaluate the price action. I hope Tuesday served as a good lesson in patience and discipline when it comes to trading.
Suddenly the metals markets are acting as expected, based on our algorithms. The failure near 2000 December gold futures and $29 December silver futures reverses the fears we had and will now look for reasons to be more aggressive sellers. We are short and will stay there, with the current action depending on movement, we could add to our short positions.
Platinum continues to turn with a bias to the upside, which is consistent with our algorithms read of that market. Too many traders and investors get too involved either emotionally or with the news trying to convince themselves to be long or short. The truth is the price action will tell you everything you need to know, no matter what market the facts come in the price.
As many of you continue to try and find reasons to buy gold, silver, and platinum. We will repeat that when trading price action is the key and their willingness to trade either side of the market is important. Investors buy when you want but do not worry about day to day movement.
Todd Horwitz Chief Strategist BubbaTrading.com
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