Gold, Silver and Platinum are positioned to make another run to the downside. The trio remain weak and without energy indicating lower prices are ahead. There is nothing that indicates this pattern is changing anytime soon.
While the metals remain solid, long term hard asset commodities in the present look to go lower. The sellers have control and continue to push at every opportunity. You must remember that all markets trend based on the time frame; the daily charts indicate lower prices are coming.
Looking back on the year in Gold and Silver, we have seen one of the tightest trading ranges in recent history. This type of action suggests that a much bigger move is coming. No one knows when the move will occur nor the direction they will head. We know that the daily charts are trending lower which is why we are short paper.
Five to ten years from now, we expect prices to be much higher but until the trend changes, we will continue to buy physical while staying short paper. It is up for you to decide are you a trader, investor, or both. If your answer is both, you must treat them as separate positions.
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 from the last call of the year on December 20th