Trading Places was the hit moviein the 1980s, with a scene in which Winthorp and Valentine were in the frozen-orange-juicepit watching the market going straight up. Valentine, getting nervous, says toWinthorp, “Louie, is it time?” The answer was simple -- not now. They watchedthe rally continue, waiting patiently for their opportunity.
The gold market is becoming verysimilar to that scene in the movie with the exception that gold is going down,not up. However, the action is consistent -- gold goes down every day andeveryone wants to know if it’s time
Again, the answer is the same --not now. Like all markets, there is a right time and place to enter a trade.
Traders and investors must watch the market footprint, waiting patiently forthe right time. Buying gold here would be the same as trying to catch a fallingknife -- dangerous and not very healthy. We will wait for the signal fromLouie.
By Todd 'Bubba' HorwitzContributing tokitco.com
Follow @Bubba_Trading