Friday saw another horrific jobs number which is exactly what the current administration wants. They want to keep stimulus as they work towards universal basic income and socialized medicine. Gold was rallying just before the number and exploded just after to 1781.

By the end of the day gold had closed lower on the day, proving the simple fact that the trend is your friend. Silver managed to hold onto small gains while Platinum exploded. Overall, once again the price action dictated the price. We remain short gold and silver expecting gold to test those flash crash lows.

As expected, the gold bugs came out with their manipulation theory which is about as ridiculous as the earth is flat. All markets take a buyer and a seller to create the trade. On Friday, buyers walked away as the bids dried up or were pulled which happens in all markets when a big move is underway.

Remember, if you believe that the metals prices will be higher some day, then you should be thrilled that the bids dry up and you can buy cheaper. Quit whining about manipulation, if you want to buy celebrate the lower price.

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

Here is the registration for Monday’s Call October 11th:

Monday Call Registration October 11th 4:30 EDT