On Wednesday both Gold and Silver had solid rallies. The move in Silver was big enough to turn us bullish making us long Gold and Silver. As we have written for weeks when the signal changes we will reverse.
We were fortunate enough this morning to reverse at lower prices and lock in profits from the short Silver trade. We will now look for pullbacks to support levels to buy. Platinum is still short although we no longer trade it. For our members, it’s too thin but we do give direction.
Like all markets, Gold and Silver go through different phases and trends. You must also remember that you must determine the type of trader you are. Investing and trading have no relationship to one another. Too many confuse the issues and reasons to own an asset.
Bottom line: we are now long Gold and Silver looking for higher prices. Make no mistake, as traders we will be short again someday; we just don’t know how long any trend will last.