Equities have been under constant pressure and are in bear markets. Except for the usual short covering vicious rallies, the trend has been solidly defined. Equities should continue to fall and all rallies that reach a level of resistance should be sold.

Gold and silver are mixed in trend with gold up and silver down. However, they both suffer from the inability to hold rallies. Over the past few days, gold and silver have tried to run up, but by days end they are back stuck in a trading range.

This is a classic pattern as a market is looking to breakout one way or the other. The consolidation churn is always challenging with so many false starts to breakout. This is also a problem with paper metals – too many outside factors have an effect.

We know that at some point gold, silver, and platinum will make a charge higher. It will take discipline and self-control to participate, which is the major flaw with those who trade. When trading markets, emotions and opinions have no place.

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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