Gold and Silver higher, sell the rally
Gold and silver are seeing a solid rally this morning, pushingup to our resistance levels. Until proven otherwise, we are selling atresistance with the trend still lower. Based on the trend and recent priceaction, there are two choices, observe and wait for the trend reversal or sellat resistance.
Since we are trend traders, andthe trend is lower, we will be sellers at resistance. This does not guaranteethat this rally will fail; however, based on the chart and the pattern, thepath of least resistance is lower. This is the action we will take as traders.
As investors, we always buyphysical metals and will continue those purchases. When accumulating physicalinventory, price is not important. You buy high, and you buy low with capitalthat you will not need in an emergency. We accumulate for many reasons, thebiggest being price appreciation over time
In all markets, price actiondetermines what will happen in the next day, week or months. Keep the twostrategies separate, the worst trade anyone can make is turning a trade into aninvestment hoping for a way out. Traders must learn to take their losses andmove on to the next trade.
Patience, discipline, and moneymanagement always win the day. Let the map of the markets show you the way.
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