Where Are the Stops - Jim Wyckoff
Gold spikes higher Monday, now lower
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Although Monday was a holiday in the U.S., the markets were open electronically. Gold churned most of the day before a rally ahead of the close. The reopen last night saw gold spike to $1,918; our first resistance is 1920. As of 5:45 am EST, gold is lower on the day; back below $1,900, the new pivot area.
We are seeing similar action in silver and platinum, although they are a little stronger than gold. Once again, those who try and trade the news lose. The phony narrative being spun about Russia and Ukraine continues to fuel energy and metals.
Of course, those who really understand markets know that most of that information is already priced in. The news you hear or read is already old news. Success in trading and investing is watching and understanding the price action. We are long gold and silver and look for the rally to continue. We are now looking for a close above $1,900 before the rally moves to the next level.
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 month. 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.