Everyday last week we wrote about the patterns in the metals, they went from the ugly to strong. Those patterns are playing out this morning once again with Gold, Silver and Platinum breaking out to new recent highs. Therefore, you never argue with price, which dictates everything.
Silver is parabolic and looks headed to 18.00 July futures, possibly higher. Platinum is right there and trying to chase down 900 July futures. Gold’s pattern is a little more rational, but is tracking 1800 June futures. As you can see the rallies have been powerful and backed with solid volume.
We would expect a small pullback across the board any day this week, but are looking to be buyers and add to our positions. Many will point to the news and say the move was because of the news, we say the price action told us the news before it ever came out. If you trade the news you lose, price action is the only thing that matters for trading or investing.
The bottom line is simple, our algorithms are long which is all we care about. When trading anything, emotions should not be a part of the decision-making process unless you like being on the wrong side of the market. All trading decisions should be made on a mechanical basis with no regard for news or opinions.
Todd Horwitz Chief Strategist BubbaTrading.com
Stop being a prophet and make profits
We are now offering a comprehensive commodity report that complements our other services. The Technomental Commodity Report comes out on Wednesday evenings and provides comprehensive fundamental and technical coverage of most commodities that trade on the futures markets in the US and UK, as well as stocks, bonds, and digital currencies. There is a summary report on Friday after the markets close, and robust quarterly reports on each of the six commodity sectors and a general overview that recaps the past three months and offers projections and suggestions for the next quarter. Andy Hecht, the author of the report, has been a commodity trader since the early 1980s and has vast experience in markets across all asset classes.