Once again Gold, Silver and Platinum failed at resistance and look ready to test the bottom end of the range at support. The long-term trend remains the same, down, which is keeping us short.

Monday saw Gold fail around 1920 December futures which was expected. Down trends like up trends have some consistency in how they trade. The simplicity of understanding price action is the key to success. Typically, with a market in a downtrend the only trade to make is to sell resistance. Of course, in an uptrend the opposite is true, buy support. The short-term range in Gold is 1920-1900 December futures and 1850-1950 in the longer term.

Successful trading is about identifying patterns and trends without opinion. We trade from facts and footprints that the patterns leave, done properly it leaves nothing subjective. Opinions and news have no value in markets when trading they only cause grief and indecision, which creates failure.

As I have written many times, I own physical Gold and Silver. However, trading and investing are never to be mixed, they work on opposite sides of the spectrum. Trading is to generate profits now while investing is based on growth. Until the trend changes, as traders we are short all the metals and will sell rallies until further notice.

Todd Horwitz Chief Strategist BubbaTrading.com
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Recording from Saturday

Hedging Recording from Saturday October 17th