On Thursday we wrote that Gold, Silver, and Platinum should do some churning at these levels. That is exactly how they performed, whipped before closing near the unchanged level. Gold up about 6.00, Silver up about .19 and Platinum down around 17.00.
Expect this type of price action for the next few days at least. In other words, we will see volatility with big swings only to close around the unchanged level. It would be surprising if there was a hug move from these levels. However, we don’t predict we watch the price action.
Remember, we are long Gold and Silver looking for higher highs. At the same time we understand that the best price action we could see at these levels would be consolidation while they build underlying strength.
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 BubbaTrading.com
Stop being a prophet and make profits
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