Gold and Silver – Breakdown or Bottom – by Todd Horwitz, Bubba Trading

 


It appears that gold and silver are now at the moment of truth are they breaking down or making a bottom? Of course, that question is impossible to answer today based on the current information at hand. A case can be made for both which is why traders and investors can get into trouble here.

There are times in every market that sometimes the best trade is the one you don’t make. A trade here is the wishing and hoping or I’m smarter than the market trade. The next move is a coin flip and the best trade here is to observe.

Gold and silver were both on the verge of breakdowns on Tuesday before coming off the bottoms, closing lower on the day but well off the lows. Gold traded as low as 1268 and silver 14.70. The current action suggests breakdown, but the footprint is mot definitive yet. Just remember “it’s better to wish you were in a trade then to wish you weren’t”.

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.