The trend remains the same - sell gold and silver
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
As much as many believe that gold, silver and platinum are buys, there is one simple thing to understand: the trend in metals is lower until proven otherwise. Since peaking in August, the trend has been lower. Remember, trends are valid until they are not.
As witnessed late last week and early this week, gold, silver and platinum reached resistance and failed. Their next step will be a test of support. At support, the metals will do one of two things, either bounce and rally back to resistance or breakdown, continuing the downtrend.
As mechanical traders, we watch the trend and never react to short-term volatility. Emotions have no place in the trading or investing world. They are always wrong and miss the most important step in trading, logic. We trade only facts, not news or emotion; markets price in events long before they happen.
The price action dictates what to expect next; in the current pattern of consolidation, our expectations are a breakdown through support continuing the current trend. Our trades will not always be correct but will always be based and math, logic, and patterns. Follow the rules without emotion and learn to win.
Hedge your Portfolio: It is time to take your investing to the next level and Hedge your Portfolio. Never panic again, be a buyer when others are in a panic.
Saturday October 17th at Noon EDT