Except for Platinum, the rallies in Gold and Silver have been weak and uninspiring. This price action should lead to a breakout to the downside. We look for Gold and Silver to test their recent lows and probably take them out. Platinum is an up day away from reversing direction and becoming a long trade.
The recent weakness should scare the bulls and possibly create a bigger sell off; there could be a race to the exits. Like that of other commodities that have been taken out to the woodshed the last few weeks, commodities in general have been struggling. The stronger dollar has added to the weakness.
To address some emails received, we remind you that we are trading the metals as well as buying long term investments. We remind you not to confuse trading with investing as it is an extremely dangerous problem that affects too many. They are completely different. Investments are held forever while trades 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
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