We are seeing typical summer action, slow and slower. This has an effect all markets including Gold, Silver, and Platinum. Tuesday’s CPI was much hotter than expected. Equities got hammered, Gold spiked, and Silver stayed in a coma. By the end of the day all markets reverted to the middle of nowhere.
With the lack of action in markets out come the predictors and the talk of manipulation. Too many are calling for the end of this bull run and calling for big moves in Gold, Silver, and Platinum. The more predictable event is that those who do not understand markets will start talking about market manipulation.
We are not saying that markets do not have an underlying invisible hand that may move markets, however the simple facts are it takes a buyer and a seller to move a market. There is always two sides to any trade, which is price discovery. Manipulators can push in one direction but cannot trade with out someone taking the other side.
Gold, Silver, and Platinum will break out again someday; they will make new highs, however until the price action changes the trend is down. History tells us that investor will eventually profit if they don’t get caught up in emotional trading.
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
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