Talk about a tough market to trade, Gold, Silver, and Platinum continue to rotate around the mean. This consolidation is the toughest to trade and doesn’t appear to be changing anytime soon. This pattern suggests a big move is coming – we will be ready.
The torture of congestion has haunted traders forever especially when it comes to like markets that are in different trends. Gold is in an uptrend, and we are long with Silver in a down trend we are short. They will eventually go in the same direction; the question is which way?
Our investment or long-term view is Gold, Silver and Platinum will be much higher years from now. However, the present brings us questions that include slow markets and mixed trends. Either Silver will reverse to the long side or Gold will reverse back to short. No one knows the answer, we will patiently wait for markets to decide and join in when they do,
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
On Saturday September 4th I shared a webinar on Hedging, Futures and Day Trading. The recording is below: