Here we go again, another major announcement that can have a dramatic effect on precious metals. Today we have the monthly jobs report which is a suspect number but can drive markets. Gold and Silver’s failures at key levels indicates weakness, the price action is weak, and the miners have gotten hammered.

The monthly jobs number is a joke and should have no meaning to anyone or anything. Since the government reports from the U-3 it does not give an accurate reading on jobs, not counting those who have fallen off the roll which can be found on the U-6.

However, with all the nonsense that goes on the metals will react along with Currencies, Interest Rate products and the indices. At 8:30 EST the jobs will be reported and is sure to create some action; rallies should be sold.

Gold, Silver, and Platinum are weak despite the recent rally attempt. Thursday after being much stronger piercing the 1900 level, Silver almost 23.50, they fell apart closing near their lows. We are short and willing to sell more at resistance.

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

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