Monday was the first trading day of the year – Gold, Silver, and Platinum got hammered. The selling started early and never relented. The pressure on Gold was enough to reverse our trading position back to the short side.
The price action brings that 1450 Gold into play, that doesn’t mean tomorrow, it means possibly this year. Much will depend on the world economy which is still controlling the interest rate markets where most of the world’s nominal rates are negative.
Silver got hammered as well, but not to the extent of Gold. Someone asked about the crushing of Silver, .60-.80 is not even a bruise. In fact, the selloff in Silver wasn’t even the biggest down day in the last 3 months. Those who understand the market may look at the selloff as a buying opportunity.
Whether you are trading or investing one day never makes a market. Selloffs of any size are just another part of the trading world. Traders must focus on the price action and ignore the news that they think is driving markets.
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.
