Markets are as quiet as they get this time of year. There is very little information that will drive markets in either direction, hence the pattern we are stuck in now. Although we can identify trends that doesn’t necessarily mean market movement.
This action is the same in all markets, the metals are no different. You have witnessed for the last few months very little action except for a burst or a sell off short term. We have watched Gold, Silver and Platinum grind in quicksand. The fear mongers have tried to create energy among the Gold and Silver bugs to no avail.
Those who believe they can predict where markets will go next or those that rely on the news are destined to lose. Price action is the only way to determine short term moves while market statistics and hedging can help the long term investor.
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
Join me Saturday September 4th at Noon EDT as I share, Hedging, Futures and Day Trading: