Gold attempted to breakout to the upside on Tuesday but failed, closing lower on the day. That does not mean it can’t happen today. The simple view is Gold is at the moment of truth, breakout and go higher or fail and test the recent lows.
When we consider a trade it has nothing to do with the news or economic data, it has everything to do with the price action. One thing you must remember: 99% of economic data is already priced into the markets, making those who try and trade the news, lose.
Silver continues to be weak and shows no signs of reversing direction. You must keep your opinion and emotion out of your trading; it can only cause heartbreak. Investing in Silver for the future with monies that you won’t need tomorrow is great. Short term trading and long term investing have no relationship.
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 Saturday I hosted a webinar on Part Time Day Trading. Here is the recording