The Tops Held And We Are Short-Term Sellers
We have been watching the marketstrade for over 38 years and occasionally get fooled by the patterns. The gold breakout last week failed and had a key reversal pattern, which indicates thetop is in. A key reversal occurs when markets make highs and close on theirlows. Gold was a little lower Friday.
We are now short-term sellers;the rally has run out of steam and rallies should be sold for now. However,long-term investment positions should be left alone. We believe the six-yearbear market is over and will hold our investment position in gold very similarto the way we trade equities. In the near term, as traders, we are sellers,knowing that our only risk is giving up some potential profits.
One of the biggest problems inthe trading and investing world is the way that investors and traders confusethe long-term goals. Don't let a short-term objective confuse an investment.You can make money on both without liquidating a long-term hold. Traders trade,investors invest, many do both but they are not related and should not beconfused with one another.
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Bubba@bubbatrading.com www.bubbatrading.com/ Disclaimer: The views expressed in this article are those of the author and may not reflect those of Kitco Metals Inc. The author has made every effort to ensure accuracy of information provided; however, neither Kitco Metals Inc. nor the author can guarantee such accuracy. This article is strictly for informational purposes only. It is not a solicitation to make any exchange in commodities, securities or other financial instruments. Kitco Metals Inc. and the author of this article do not accept culpability for losses and/ or damages arising from the use of this publication.