After a solid run higher Gold has finally reversed to the long side. The action has been precarious at best, but the pattern has changed. As of this morning we are now long Gold, and the key support level is 1790-1800 December Gold futures. We will now look for a big run higher.
Silver and Platinum remain in the doldrums although as of 5:30 am EDT they are higher. 24.50 December Silver futures is the major resistance to overcome before we will see a reversal. In Platinum October futures the major resistance level is 1025-1030.
For now, we will call the precious metals mixed although we are always buyers of physical metals. We must remember that these quiet markets are a challenge and can move in either direction. As always we will follow the trend in our trading accounts and accumulate physical inventory across the board.
We don’t predict, create need, or fear but report the facts of what we are doing and willing to do. Buying physical metals is never a bad idea as long as you don’t confuse the purchase as a short-term play. Physical metals are for holding, paper metals are for trading.
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
Here is the Monday August 30th Monday Night Strategy Call recording: