Since the flash crash in Gold on Sunday/Monday August 9th the yellow metal has rallied everyday since. We have seen the low at 1680 and currently pushing 1800. As of today, we remain short but are on the cusp of a reversal. That reversal can’t take place until Wednesday if at all.
As investors in Gold, Silver, and Platinum we accumulate the physical metals, as traders we trade the paper metals via our algorithm based on the current trend. That trend is lower in Gold and Silver, higher in Platinum. We believe the metals are great value over the long haul, but investing is not the same as trading.
The current trend is down, but Gold is getting close to a reversal while Silver looks awful. This is the slowest time of the year for all markets making movement faster than usual on thin volume.
This is no time for active trading, although we are always in the futures, long or short. Our models are in everyday of the year either long or short. All decisions are made by our algorithm without emotion or opinion. Although we like the metals as long term holds, we will trade them based on our formulas.
Patience, discipline, and money management always win the day. Let the map of the markets show you the way.
Todd Horwitz Chief Strategist BubbaTrading.com
Stop being a prophet and make profits
On Saturday I hosted a webinar on Part Time Day Trading. Here is the recording