Gold price should fail from here

October 2, 2020

New York (Oct 2)  The fight for gold has been on all week. The weekly bottom was made Monday at $1,851 in December futures. As of 5:35 am EST, gold is near the high of the week. Like artwork, we can all look at the same picture and have a different opinion about the same chart.

After 41 years as an independent trader, I have learned many things. The most important: markets are never wrong and opinions almost always are. Emotions and money play significant roles in decision making. With all the turbulence in markets and the economy, we have stayed short all metals. Remember, we are trading a mathematical model, not an opinion.

Although we have seen a solid rally this week, prices have not broken out to the upside? Watching and understanding price action is the only way to trade markets. There is no opinion, no emotion; we just trade the facts of price. The rally should have been bigger this week. Indeed this morning, gold should be strong.

Remember, when trading, the price action and the model can change. This means that we are not married to our short positions and know they have risks. However, since we have no opinion and the model is short, we will stay there.


Silver Phoenix Twitter                 Silver Phoenix on Facebook