Everyday has become a mirror image of the day before for Gold, Silver and Platinum. They try to rally and fail; this pattern has been happening for a couple of weeks. Tuesday morning, big rally in Gold and once again a lower close. This morning Gold, Silver and Platinum are higher, no surprise if they fail and close lower on the day.
Remember, if we can determine the trend of anything we expect the direction to continue until it changes. We wrote last week that rallies in the metals should be sold which has been a winning recipe during this downtrend. The play is to sell at resistance until the trend changes.
There is no doubt that someday the trend will reverse again and we will become buyers on dips. There is always a fine line but the current trend trumps all and all trades should be made with that trend. We are short, sellers of rallies until further notice.
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
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