It’s that time of the month – today is jobs Friday. What does it mean and why is it so important to the precious metals? Other than in peoples minds, jobs Friday is a worthless number that is not reported properly and is always revised. The focus on the jobs number is on the 3 months versus the 6-month, rendering the report garbage.

However, the street interpretation of the worthless number can still trigger market movement hence the meaning to markets and metals. The expectations are for an increase of 250k non-farm jobs with the rate remaining at 3.6 and a small pay increase.

Markets will react in a big way in either direction; they will calm down and then probably continue their trends. Many will watch the dollar after the number and try to correlate to the metals. That’s a mistake considering the fiat currency is as fraudulent as it gets as central banks around the globe create more dollars to cover mistakes.

The trend in metals is down however once again close to creating a reversal. Our concern today is not jobs, but the price action created from the number. Although a bullish case can be made, look for metals to fall until proven otherwise.

Precious metals should be owned on a physical basis with capital that is not needed tomorrow or anytime soon. Trading should be done with paper knowing that we can trade either side without emotions.

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.

Todd Horwitz Chief Strategist
Stop being a prophet and make profits