I have been trading as an independent trader for 43 years, one thing I can tell you, we never get used to the misery of congestion. This is the pattern that we have been watching for Gold and Silver for 3 weeks. Silver has been stronger inside of the tight range while Gold failed to breakout to the upside in June and failed breakdown the other day.
It is now fairly obvious that this morning’s Jobs Number will be the driving factor for Gold and Silver. At 8:30 this morning the jobs will be announced, they are supposed to be good. Based on the ADP jobs numbers from Wednesday these numbers will be strong, however what is priced in.
We remain short Gold and Silver and are expecting a breakdown. Obviously, we can be wrong, the breakout could be higher. No matter what it is our opinion that this morning’s jobs number will lead the way. We will be short until at least Tuesday. Just watch the price action and join in with the breakout in either direction.
Patience, discipline, and money management always win the day.
Todd Horwitz Chief Strategist BubbaTrading.com
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