Monday saw Gold, Silver and Platinum trade higher, but the rallies were not powerful nor exciting. We expected a rally but thought they might be stronger which is consistent with a dead cat bounce. The rallies were weak and lacked any conviction.
We are already short Gold and Silver and the weak rallies gives us reason to believe they are going much lower. That does not mean they will get trashed today only the outlook suggest lower prices. As of this writing, Gold, Silver and Platinum are slightly higher.
The same levels we wrote about on Monday; apply Gold’s support is 1750 based on August futures. A breakdown below, 1750 brings 1725 into play. Silver’s support is 25.5 based on September Futures. A violation of 25.5 brings 25 into play.
Remember we are not prophets and are basing everything on the current price action and the trend. This has nothing to do with long term physical investors these are trades that can last days, weeks or months.
Patience, discipline, and money management always win the day.
Todd Horwitz Chief Strategist BubbaTrading.com
Stop being a prophet and make profits
Recording from our Monday Night Strategy Call with Andy Hecht below.