It’s a new day but the same lousy action for Gold, Silver, and Platinum. The three are going nowhere; every rally is met with sellers and every sell off is met with buyers, hence they all churn around the mean.

Consolidation trading is tedious and painful. We see many false starts in both directions making trend trading challenging. What this type of price action really means is simple: there is a much bigger move coming. When and direction to be determined.

Our current positions are short paper Gold and Silver, which suggests the big move will be lower. However, if or when we get long, I will defer to the long side. Obviously I favor a move that is the direction of my position.

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
Stop being a prophet and make profits

On Saturday February 5th, 2022, at Noon EST we will be hosting our webinar on Hedging your equity portfolio. If you would like to learn how to protect your assets Register below.

2022-02-05 Hedge When You Can