Equities Have Topped; Gold Is Confused
Editor's Note: Gold and silver has been, at best, a frustrating trade. Exclusive to Kitco News, expert trader, Todd "Bubba" Horwitz, chief market strategist and founder of 'Bubba Trading provides a strategy investors can use in a range-bound gold price environment. Sign up before March 10 for the Kitco News Weekly Rundown newsletter to receive Horwitz's exclusive report and trading strategy.
Based on market action, theequities have topped and the start of the correction has begun. The technicalaction has been bearish with rip-your-face-off rallies that fail to take outthe previous highs. Markets that are topping are very volatile as investors tryand buy the dip, which continues to fail.
Gold and silver are now in theirsixth week of consolidation, churning back and forth, making double tops anddouble bottoms. Congestion is just confusion; traders are split between buyersand sellers. Gold is in that confused state between $1,300 and $1,365. Newmoney buys near the bottom end and new money sells at the top end of the range.
Equities are setting up for a bigcorrection that has already begun, but no one believes that these markets willgo down. The pundits are very convincing that this time is different, but ofcourse, it's never different. Gold and silver will eventually break of thisconsolidation pattern. Our guess is lower first, which will create a buyingopportunity.
Contributing tokitco.com
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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.