Gold, Silver and Platinum remain in downtrends on slow conditions. Suddenly, Platinum has become the weakest metal, threatening to break through the flash crash lows. Silver is a close second, but the lack of activity makes the trade a challenge. Gold has failed to breakout to the upside a few times which could spell trouble.

Unfortunately, all markets are operating on two speeds right now: slow and slower. That may be benefiting the metals from really getting clobbered. Slow conditions rarely lead to big sell offs and typically breed consolidation. Equity markets typically benefit from these conditions, there are always buyers the lack of activity tends to drift higher.

As we wait for the Labor Day holiday, expectations are for more of the same. We remain short Gold and Silver but don’t expect a major plunge before market action picks up. The most important information to take from these markets are, opportunity is scarce if you are not patient, you can create losing trades.

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
Stop being a prophet and make profits

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