Friday saw a weak jobs number which we expected. The weak numbers propelled Gold, Silver and Platinum much higher on Friday. As of this writing the metals are mixed with Gold slightly lower, Platinum flat and Silver marginally higher.
They could go anywhere from here, we are long Gold, short Silver and would be short Platinum but it is not liquid enough. We are now past the Labor Day Holiday but that doesn’t mean that business will come back right away. Rosh Hashanah started on Monday night which will also slow markets for the next couple of days. Shana Tovah to those that celebrate.
All markets are in an interesting time, there is no volume and the central banks around the globe keep devaluing their currencies. One would think that Gold and Silver would be flying higher, however they are moving marginally in both directions. Eventually there will be bigger movers that will probably be higher, until then be patient.
We don’t predict, create need or fear but report the facts of what we are doing and willing to do. Buying physical metals is never a bad idea as long as you don’t confuse the purchase as a short-term play. Physical metals are for holding, paper metals are for trading.
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
On Saturday September 4th I shared a webinar on Hedging, Futures and Day Trading. The recording is below: