Gold, Silver and Platinum had nice rallies on Tuesday which was expected. We wrote about our expectations and we would be sellers. We added to our shorts in Gold and Silver, selling at resistance in a downtrend. This is common action in markets that go too far too fast in either direction.
Equities had a monster rally with the Nasdaq up over 500 points. We also sold more equity futures for the same reasons. The major trends are still lower, and it would take a duplicate rally today to possibly change the signals.
There is one piece of advice I offer to traders and or investors. They are two separate processes. Traders are watching a different time frame and could trade multiple times in a day. Investors are holding for a much longer period. Emotions and opinions are the most damaging to both, short term traders use stops, investors look to buy more.
Bottom line: follow the trend created by the price action. Price creates a footprint which is like a map to the treasure. Keep the news, emotions, and opinions out, let price action be your guide.