On Tuesday, both gold and silver attempted to break out of consolidation and potentially start a new uptrend. They both failed closing lower on the day which is a more bearish sign. However, they are rallying this morning, looking like they will make another attempt to break out.
As we write and talk about often, the worst trading pattern is consolidation which almost all markets are in right now. Equity markets, metals, and others are at a key point of potential reversing. We remain short, but know at these levels, we know there are dangers that would force us to reverse.
Platinum has broken out, if the move confirms today with a higher close- platinum up two dollars now, we will be reversing tomorrow. A flat to lower close will keep us short. As we try to remind you on a regular basis, we do not play intraday price movement, our decisions are based on closing.
Obviously with our positions predominantly short is the key time, but we will reverse when the algorithm calls for it. We do not argue with our trading methods, we follow the rules exactly. For today we are short just about everything, the rally probably reverse us long term.
Todd Horwitz Chief Strategist BubbaTrading.com
Stop being a prophet and make profits
On Saturday September 12th we presented our Equity Portfolio models. Here is the recording from the event