Gold has broken through the 1800 level once again; will it hold and reverse to long? At this point there is no real answer except the trend is lower and until that changes it is highly unlikely. 1800 has been like a magnet whether long or short.
Friday’s jobs number was an upside surprise however was a BS number and will be revised next month. The facts are simple, Gold, Silver and Platinum look awful but have managed to hold key levels off support. We should be mindful that can change in the blink of an eye.
In the short term, it is hard to get excited about the precious metal space, price action is lousy as is the trade. They must prove that they can sustain a rally well past 1800 Gold, 23.00 Silver and 1080 Platinum. Until those events occur the short side is the right side.
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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