As expected, Gold, Silver and Platinum continue to churn around the mean. We remain short Gold and Silver which should pull back to at least the key pivots of 1900 Gold and 23.50 Silver. They can find new support and reverse but until the pattern changes, they remain short and headed lower.
This is a very interesting time in all markets, equities rally based on the FED put while metals struggle for the same reasons. There have been no extensions of the rallies or the sell offs which means the markets are in wide sweeping consolidation which has lasted for over a year.
Eventually, the move will extend, creating a much longer-term trend whether up or down. Unfortunately, we are not fortune tellers or prophets. We can only play the price action in front of us. This business is about patience and waiting for the markets to commit to a direction. Until then, we will see churning and reversals.
Precious metals should be owned on a physical basis with capital that is not needed tomorrow or anytime soon. Trading should be done with paper knowing that we can trade either side without emotions.
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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