Gold and Silver continue to see slow directionless trade. The bulls will talk about the gold rally the last couple of days and the bears will talk about the inability to breakout of this range. Either way the price action is awful or neither gold nor silver look good. As of now they look on a fast track to nowhere.
The trend has not changed gold and silver are headed lower until proven otherwise. Silver has joined platinum in taking out the flash crash lows while gold has been able to stave off that fate for now. However, it will be no surprise if gold takes out that low as well.
The FOMC reports today at 2:00 EST and tells us their decision on interest rates. There is almost zero chance that they hike rates; more than likely they stay on the same dumb course. Whatever they say could create a dramatic move in metals, the question will be which way. We assume down as we remain short
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 for Monday’s Call: