Gold, silver, and platinum all failed to take out the top end of the range, they now located to the bottom end to test support. However, all three remain in the admissions pattern known as congestion. Eventually congestion will end, and they will trend again, the only question is when?

The last couple of days gold has failed to break out higher and is now headed south in what looks like could be very ugly. Since August 7th,  gold has made a series of lower highs indicating the selling is not over yet. Recent tops in gold were on August 18, September 1, and September 16. 1900 to 1925 will be a major test of support for gold.

Silver is in a similar pattern, though not as dramatic. What we are seeing in these markets is very tightly wound congestion, which will lead to a breakout in one direction or the other, for now, we say lower. Platinum was very close to reversing as we said yesterday, but failed and is down this morning.

Our positions remain the same. We are short. All three metals and will stay there until we get a reversal signal. Daily trading action has no bearing on our algorithm, do not get swept up by the emotion of traders or the Federal Reserve. It just reads the patterns with our mathematical formulas. It’s that simple!

Todd Horwitz Chief Strategist
Stop being a prophet and make profits

On Saturday September 12th we presented our Equity Portfolio models. Here is the recording from the event

Equity Portfolio Management