Monday Gold churned around the mean attempting to reverse the trend and failed to do so. This morning Gold is higher and once again will attempt to sustain the rally to reverse.
We must remember that the technical trade, which is all we watch, must confirm a reversal. Think of the chart as a GPS system or an old fashion map; it continues to spit out instructions that you must follow. Don’t be that stubborn guy who won’t stop and ask for directions.
Silver and Platinum are perking up and are in uptrends. Although, Platinum was down hard early Monday. By the end of the day it had pared most of its losses and is higher this morning. Silver looks to be targeting its next level of 24. For today we are long Silver, short Gold and would be long Platinum if it was liquid enough
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 December 29th I will be hosting my hedging webinar at 5:00 EST, you can Register below: