Monday the equity markets and most of the soft commodities got hammered triggering sell signals in some of the equity markets. This morning markets are up big which is a sell signal. Down trending markets that open higher typically will close lower, every rally to a resistance level is a sell.
With the aggressive selling in equities on Monday many expected a big rally in Gold and Silver, that did not occur. Gold was marginally higher, Silver and Platinum lower. Silver and Platinum have taken out the flash crash lows, indicating lower prices will continue.
Although Gold was higher on Monday, early this morning it is flat to lower. Our expectations are that Gold takes out those flash crash lows as well. Obviously, that can change based on the price action but there are no signs that Gold will turn bullish anytime soon. We remain short.
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
Here is the recording for Monday’s Call: