For the second time in 10 days, Gold and Silver were thrashed relentlessly, ending up in a late free-fall. This type of action confirms they are in a downtrend which is what we have written about the last few days.
All markets go through different phases, patterns, and trends. Those who get too excited on rallies or sell offs usually find themselves on the outside looking in. Market prediction is the same as a weight guesser at a carnival, except weight guessers do not lose hard earned cash while speculators do.
Making real money trading Gold, Silver and Platinum requires flexibility and no opinions. Furthermore, calling for ridiculous prices is more of a ploy to relieve you of your cash. Can Gold go to 5,000, 10,000 or higher? The simple answer is yes, however there is a long way between 2,000 and 10,000. There are many stops on the way to the next new high.
For now, the trend is lower in Gold and Silver, while platinum holds on to the uptrend by a fingernail. We will stay short Gold, Silver and long Platinum until price action suggests changing. It is that simple, don’t make it complicated.
Todd Horwitz Chief Strategist BubbaTrading.com
Stop being a prophet and make profits
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