The fight for gold has been on all week. The weekly bottoms were made on Monday at 1851 December futures. As of 5:35 am EST, Gold is near the high of the week. Like artwork, we can all look at the same picture and have a different opinion about the same chart.
After 41 years as an independent trader, I have learned many things, but the most important is that markets are never wrong, opinions almost always are. Emotions and money play a big role in decision making, with all the turbulence in markets and the economy we have stayed short all metals. Remember, we are trading a mathematical model, not an opinion.
Although we have seen a solid rally this week, why has gold not broken out to the upside? Watching and understanding price action is the only way to trade markets, no opinion, no emotion just trade the facts of price. The rally should have been bigger this week, certainly this morning Gold should be strong.
Remember, when trading the price action, the model can change. This means that we are not married to our short positions and know they have risk. However, since we have no opinion and the model is short we will stay there.
Todd Horwitz Chief Strategist BubbaTrading.com
Stop being a prophet and make profits
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