On Tuesday we wrote about the tortures of consolidation suggesting a breakout in either direction was coming. We wrote that based on our algorithm and positions the breakout would be higher.
Wednesday was possibly just the start of the next big rally with Gold stalling at 1840 which was our next level, Silver at 2440, while Platinum kept going and is now on track for 1100. We are long and expect these prices to continue to rise.
This morning the Metals are mixed as of 5:30 EST but certainly look strong. Although we expect a much bigger rally, we know that pullbacks are imminent. Markets don’t go straight up or straight down they always find a level to reverse course even if only for a short period of time.
Until something changes, we will use pullbacks to add to our current long positions. Nobody knows how far this rally will go but with the trend higher we will stay long willing to add. In all markets identifying the trend is job number 1.
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.