Monday saw a quiet day in metals. Gold, Silver and Platinum were on both sides of unchanged, hugging near unchanged. We saw light volume with little movement which is only a sign that Gold, Silver and Platinum are seeing the pause to refresh.
There were no surprises on Monday, we expect some retracement. We expect some consolidation as we look for the next leg higher. The trend is higher, much of the economic news points to a big rally. There is no question that the buyers are in control.
We must remember that there are no promises of new highs, Gold 5000, or Silver 50. There is no doubt that someday those levels will show, however there are many stops along the way. We can only see one level at a time and the sooner you realize that the better you will trade it.
Follow the footprints the markets leave and be flexible enough to stand aside when the metals are not going your way. Trading always come down to the patience, discipline and ability of market participants to take losses when they are wrong.
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
Monday Night Strategy Call Recording: