There are times when markets just look ugly and today is one of those times.  Gold and Silver look like they are in for a rough one. This does not change our algorithm or our position; we are just observing the short-term price action. Today looks like it could be one of those days.

We are not recommending anything except to observe the price action. The price action should be very interesting and educational today especially with the jobs number coming out tomorrow. Typical action before a major economic report is quiet consolidation.

We will remain long and look for a much bigger rally after this initial rock period is over. It would be no surprise to see Gold trade down to the 1850 level or Silver to trade down to 27.5. We must remember that this type of price action is normal and never unexpected. In this business you must always be prepared, not surprised.

Todd Horwitz Chief Strategist
Stop being a prophet and make profits