Gold and Silver prepping for a big move – By Todd Horwitz, Bubba Trading

 

The last five or six days have been a non-event for the metals. Every rally has been met with sellers and every sell off allowed buyers to come in. In the meantime, they have gone nowhere which suggests a much bigger move coming.

As we evaluate the recent market action the default action should be to the downside. It’s obvious that a move is coming, bulls will reason that the economy is in trouble, interest rates are falling and their wishing the metals higher.

The bears will make the case that the recent footprint shows a downtrend and the selling at resistance is expected. The assumption that all of the news that the bulls are suggesting for the reasons to go higher have been priced in well in advance of the current move.

The bottom line, as long as Gold stays below 1520 and Silver below 18.00 the path of least resistance is lower. We are short and sellers until the metals can close above the resistance levels. It’s that simple

Todd Horwitz
Chief Strategist
BubbaTrading.com

Financial Markets and Political Commentary
 

Tags

, , , , ,

Related Posts

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.