Gold and silver continue to head south, and platinum has now joined the party. The failure to break out the last couple of days should turn out as added fuel to the downside of these markets and could accelerate selloffs. Grammar, spelling, and sentence structure is no bearing on our opinion on the metals.
The facts are clear: gold looks unable to rally and has already accounted for the money printing by the Fed. Remember, markets usually price in most information before it ever hits the tape. In this case, the whole world knew what the Fed was going to do, gold rallied hard and is now failing. This is one of the major reasons if you try to trade the news- you lose.
Silver is in the same pattern as gold, failed at resistance and now looks headed much lower. Platinum is just starting its downtrend, breaking down on Wednesday creating a sell signal this morning. Remember we only trade mechanical based on our proprietary algorithm and follow the rules.
Traders who have an opinion usually lose money trying to beat or time the market. It is easier just to follow the rules knowing that you will not always be right. However, you will always catch big trends, which is what trading is all about. For all prophets and carnival hucksters who do not stand a chance long-term, do not let them suck you into a bad opinion when the answers are always easy. It is the price action.
Todd Horwitz Chief Strategist BubbaTrading.com
Stop being a prophet and make profits
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