Gold hits resistance and falls hard

New York (Jan 21)  This morning, around 4:00, gold hit the top end of the range near $1,860 April futures and quickly reversed, dropping almost $30.00 in 30minutes. This action was classic for a market that is in a downtrend. Until the trend reverses, we are sellers of resistance.

Silver's action was similar to gold but not quite as dramatic. The trend in Silver remains down and should be traded the same way. Platinum has held major support continuing its uptrend and overwhelming strength over Gold and Silver for now.

One of the best things about trading mechanically with our proprietary email you are always prepared and seldom surprised. Trading becomes a matter of fact without emotions. We are not always right, but consistency without emotion is still the best way to trade.

Those who focus on politics or react to the news are soon out of business. Remember, all markets have expectations based on the news before anyone ever hears or sees it. When you read or see a news announcement, it has already been priced into the price most of the time.

Here is the recording of Options Training Session 2 – The Next Step. We have also included a registration link for session 3 on Saturday Jan. 23 at noon est.

KitcoNews