Once again Gold, Silver, and Platinum are churning within a trading range. There are always questions about the patterns they trade in. Throughout history, traders and investors have tried to guess where the bottom or top of any market is, usually at great expense from being wrong.
After watching the equity market take off this week and spiking higher every day, are the metals starting to follow? We do not know the answer with 100% certainty. Anyone who tells they do is a liar or a loser. However, many will continue to try especially when looking for the bottoms.
Although we remain short Gold, Silver and Platinum we can see a possible bottoming process. We will not change direction until this move confirms that indeed the bottom is in and a rally starts. We will never sell the top or buy the bottom, we are trying to capture the 70% in between.
To be successful when trading markets you must wait for a move to confirm direction and trade with enough capital to deal with margin and a drawdown that can happen at any time. It is always best to use a systematic approach with strict rules, no matter what.
