Gold and Silver are following the children’s book, “The Wheels on the Bus” go round and round, which describes the current pattern in markets. For months we have been trying to write about these markets and their current trends. Look at the charts and you will see that Gold has gone nowhere while Silver has worked lower.
This pattern sets up the possibility for a huge meltdown in the next couple of months. People keep giving me reasons why Gold and Silver should go higher, however they have not. In all markets, it is always interesting when everything points in one direction, yet the asset itself goes the other, is usually a sign that there are issues underneath the surface.
Our mantra remains trade the news you lose, which is playing out in markets as scripted. In other words, news is worthless and a guaranteed loser for those that follow. Price action suggests that there could be heavy selling in Gold and Silver; Platinum has already started the meltdown.
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
Stop being a prophet and make profits
Here is the Recording of our Monday Night Strategy Call: