Gold and Silver appear to be in the process of reversing direction and switching from a downtrend to an uptrend. This morning’s rally in Gold taking it over 1800 August futures which is the key level to watch. Silver is not quite as strong but is close as well.
We have been able to ride the trend lower and will be short until tomorrow. Our methods do not get involved with intraday volatility or emotional trading; they are matter of fact. The trend is still down until it changes, even with this rally today.
Remember it is not how markets open and trade during the day but how they close. The charts and price indicate a shift in sentiment and with confirmation after today’s close we may change our positions. We will not be sellers today; we will hold current shorts to see if there is follow through.
These conditions are always the toughest for traders, the desire to not miss the move and cover short positions weighs heavily on one’s emotions. The best course of action is to sit back relax and watch. Emotions never win and sometimes the wait can be painful.
Patience, discipline, and money management always win the day.
Todd Horwitz Chief Strategist BubbaTrading.com
Stop being a prophet and make profits
Recording for Monday Night’s Strategy Call July 5th with Andy Hecht below.