Yesterday we wrote that Gold, Silver and Platinum were waiting on the FED and that they were pricing in big decision. Once again, the FED tries to cover the ignorance of their ways and took the easy way out, delivering the weakest decision. They will taper Q E and have three rate hikes in 2022.
What we must watch for here was the big reversal on Wednesday with follow through today a true reversal or the shorts caught with their pants down again. The greater likelihood is a short covering rally. Often the case when the shorts are too aggressive pricing in expectations.
Over the next couple of days, the markets will decide on whether the trend has changed, or this is a great selling opportunity. The pattern is a little unclear with the recent action, we will maintain our short position and observe the market.
Traders must understand the markets and when the time is right for aggression or being passive. Now is the time to sit back and manage current positions without adding or reversing. Let this cycle play through and the answers will become clear.
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
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