The pattern continues as Gold churns. Every rally has been met by sellers as the downtrend continues. The Gold bugs can continue to wish prices higher, however the trend has not changed. All the wishing in the world will not change the trend or the price action.
At the same time, Silver continues to fall and is in danger of breaking down to the next level. The must hold price for Silver is 23, a fall below brings the flash crash lows into play. Like Gold, wishing and hoping the price of Silver goes higher won’t make it so. The market is absolute and the price is the price.
After the flash crash in Platinum, the pattern turned bullish but has quickly reverted to a downtrend. This has been an ugly period for precious metals and there are no signs of a turnaround anytime soon. We know that the trend can change at anytime but for now we are short all metals.
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