Most markets continue to chop, which means go nowhere while torturing the traders. When it comes to metals the patterns are the same as every other market. However, this administration keeps giving reasons that Gold and Silver should rally.
Gold and Silver are doing nothing despite massive bullish news including inflation that could go as high as 20%. We are long Gold and Silver but also recognize that trying to trade the news you lose. Price action will always be the determining factor. Markets price in expectations meaning that with Gold at 1900 and Silver at 28 the news we are seeing could already be priced into the markets.
Remember, if the news were not so bullish Gold could be at 1600. Too many make the mistake of reacting to old news. There are no secrets, markets are well ahead of investors and price is all that matters. The current price action is bullish hence our long positions. We are always long physical, now we are long physical and futures.
We expect over the long run prices will rise and have no trouble holding physical metals. Do yourself a favor and quit predicting price, playing the news, and overleveraging. Understand your risk and do not overextend no matter what. If you do all that, you put yourself in position to succeed.
Patience, discipline, and money management always win the day.
Todd Horwitz Chief Strategist BubbaTrading.com
Stop being a prophet and make profits
Here is an interview I did with Wall Street Silver last week. You will find it consistent with my writing and positions.
Here is the recording of the Monday Night Strategy Call