The metals markets have been as ugly as they can get without breaking down. For the last week or two major support levels have been holding, but the pattern could be changing which could lead to a big sell off. We have not reversed and remain long, but understand that the risk to the downside has increased.
Gold is back at 1700 this morning based on the June futures, looks like a little short covering. However, the big picture shows us either a forced liquidation or margin selling. Almost everyday a big seller shows up for a few minutes, hammers Gold and then goes away till the next day. That is a major concern, but the buyers have defended support which brings the question, who will win this battle?
Silver and Platinum look almost identical, both turning in bearish action with just enough buyers to defend the support line. Silver and Platinum are in an ugly pattern which has a high probability of breaking down. However, we will stay long until the pattern confirms a reversal.
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
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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.