Gold, Silver and Platinum continue to run higher; Gold blew through 2000 and is 2020 as of 2:30 am EST. It was a surprise that Gold didn’t pause at 2000, however from here we expect a pause or small pullback. The speed in which Gold moved is too fast and parabolic.
On Monday Silver struggled but has regained its strength overnight and is trading 26.50, on its way to 30. Unlike Gold, Silver’s rally has been steady hugging the trendline on the way up. We expect the rally in Silver to continue without too much trouble.
The best performer from a technical view is Platinum, which has traded as written in textbooks. However, Platinum is the weakest in price and distance from the highs. Platinum should reach 1400 on this move up.
Commodity markets have been exploding especial Wheat, Crude, and metals. With equities starting to fail, this will add more power to the commodity markets with money looking for a place to go.
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
Stop being a prophet and make profits
On Wednesday I will be presenting a webinar on Options in partnership with Tradier Brokerage and the CBOE. The link to register is below: