News, analysis and commentary for gold traders and investors

"Be Right - Sit Tight"

Jesse Livermore
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Gold Market Wire

News, analysis and commentary for gold traders and investors

Gold Market Opening

Gold and Silver...on the Back Foot

June 4, 2020 – (Gold Market Wire) It doesn't take a genius to know that down moves in most markets, especially precious metals (and especially Silver) are a lot faster than the up moves. When the freight train runs, you have to be nimble and get out of the way. This week was a perfect example. On Tuesday we felt that we had a chance to vault over $1748 on Gold, but when Wednesday opened up weak in the East, we recommended cutting the positions and getting to the sidelines. It was the right move. Hanging on through downdrafts is for the long term investor – not the trader.

$1683 - $1748 is still the band. we're at the lower boundry


We had some good indications Wednesday morning that things were turning sour in the Silver market, and once our gap failed to recover we recommended pulling out of the market

Wednesday's early failure to reclaim the gap signaled to cut the position


Now we await an entry point. Gold is still in a bull market. Nothing has changed that. But finding the right entry point, as ever, is the key. We now focus on the 50-day moving average to see if the market can hold on to it. Although it appears facile, entry point and avoiding the reversal are the keys. Having the discipline to simply drop the position, now matter how “convinced” you are is the fundamental to being a flat price trader. Sure, you spend a lot of time on the sidelines, but like the Texas Hold-'Em player who folds a lot of hands, it is the key to making money. The losers in the metals arena are those who run around seeking action. Remember, it is the markets remit to drive you to despair over what you think is the 'right' position. Holding firm to your convictions is mere ego. And it is costly. Having clear parameters to get out, and then pulling the trigger keeps you alive to try another day. Trading isn't so much about “being right”, it's about knowing when you might be wrong, and acting.

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