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Today is jobs Friday. Equities and metals have been under pressure all week. The FED continues to be unable to recognize the problems they created. The question here is, what has the market priced into this job's number?
Based on recent price action, which has reversed our Gold and Silver positions to short, pushed the 10-year notes to 1.73%, and looks to be reversing the trend in equities, we can only assume a strong number is expected.
The first week of the new year has brought tumultuous results, there have been some heavy sell offs in all markets. This is the problem when the central banking system thinks they are smarter than the markets. Their history proves they are clueless.
We are short Gold, Silver and would be short Platinum. We would use these sell offs to buy physical metals as investments. While we are benefitting from the sell off with our short positions, we will be buying physical.
In all markets price action determines what will happen in the next day, week, or months. Keep the two strategies separate, the worst trade anyone can make is turning a trade into an investment hoping for a way out. Traders must learn to take their losses and move on to the next trade.
Patience, discipline, and money management always win the day. Let the map of the markets show you the way.
By Todd 'Bubba' Horwitz
Contributing to kitco.com
