Like watching a great sporting event, viewers and fans always want to see the replay repeatedly. Gold and Silver look like they are setting up such a play. The fact that the exact pattern is repeating itself, consolidation, and break out to the upside.

After Thursday’s big up move followed by Friday and Monday’s failure to really follow through, the same congestion pattern is forming. The last three big up moves came from this exact pattern. We know that there are concerns about the Bond markets and the ignorance of the FED, however price will always dictate.

The biggest thing any trader and investor can do is block the pundits and the news while following the price action. Use Friday’s jobs number as your guide, the equity markets exploded higher on horrible jobs number, which shouldn’t have been the case. Of course, yesterday and this morning’s action is destroying that rally.

The bottom line is simple: follow the path of least resistance like following a map. As of now, current price action is setting up an instant replay. We remain Long Gold and Silver.

Todd Horwitz Chief Strategist
Stop being a prophet and make profits

Every Monday Andy Hecht and I host a strategy call. Here is yesterday’s recording:

2021-05-10 Recording: Monday Night Strategy Call

We had a Farmer Hedging Q+A on Saturday. Here is the recording:

2021-05-08 Farmer Q+A