Gold’s YO-YO Trade. The rotation of new money will drive investors and traders crazy. By Todd Horwitz, Bubba Trading.

 

As gold and Silver move into the consolidation phase we continue to see attempts to buy and sell. The rotation of new money will drive investors and traders crazy. This phase of all markets is also known as the torture chamber of investing.

After Friday’s rally in the metals, Monday brought some heavy selling and this morning we see higher prices. The confusion that traders feel is the one of uncertainty.

The simple fact is the healthiest and most bullish action is to see what we are seeing now. Gold held the 1280 support and is now churning which should eventually lead to a breakout to the upside. Only time and the pattern will tell.

Todd Horwitz
Chief Strategist
BubbaTrading.com

Financial Markets and Political Commentary
 

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About the author

Todd Horwitz - Author of “Average Joe Options“. Todd began his trading career in 1980 at the CBOE. He was one of the original traders in the OEX & helped start the SPX. He is a member the CME where he trades S&P futures as well as foreign currencies & is a regular contributor to CNBC, Bloomberg, BNN, Fox & many other major news networks.