Tuesday all looked right in the world, Gold, Silver, Platinum, and equities were running higher. Out of nowhere around 8:00 am EST small sellers started to show up and markets saw a little selling, which was normal in any market. Profit taking and other reasons to see a small pullback.
Suddenly around Noon EST the selling accelerated, the massive sell off was on. Gold Silver and Platinum reached our support levels we wrote about yesterday morning. After reaching the key support, Gold, Silver and Platinum started to bounce still closing much lower. This morning everything is bouncing recovering some of the losses.
The bigger question: What’s Next? The easy answer there is more room to go on the downside in metals. The support levels that held on Tuesday will probably fail over the next couple of days. The metals have been in a solid downtrend, there is no reason to try and pick the bottoms. Let the price action determine direction and leave the news and your opinion at the door.
Today the FED makes their announcement on rates, it appears the street is expecting something big, bullish, and enough to keep the rally in equities running. Either way there could be very volatile action around the 2:00 PM Est announcement. Our expectations, metals fall and break through support. However, either way we will be ready, but we are short going into the announcement.
Todd Horwitz Chief Strategist BubbaTrading.com
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