Can gold hold the new uptrend?

New York (Dec 30)  Although gold was getting hammered recently, the trend has reversed to up based on yesterday's close. We will look at this as an opportunity to buy at better prices, but buying we are doing. Our algorithm is based on the pit closing hours, which were still higher yesterday even though after-hours gold was lower. 

Now gold, silver and platinum are in uptrends, although this morning's action is ugly. Of course, we are swing trading the paper metals, which means we are in for days, weeks, or months. Unless a reversal is triggered, we will hold our positions on either side. Nothing but the algorithm will change our positions.

Now the big question is, will the trend last? The answer depends on your time frame and capital position. Historically, gold, like equity markets, trend higher over time. However, big moves in the short run can trigger signals in either direction. Over time, what looks like a big move today barely registers on a long-term chart. 

You must decide what type of trader or investor you want to be. You can do it all but must separate your emotions and opinions from the market. Buy physical for the long run and trade paper on either side in the short run.

In all markets, price action determines what will happen in the next day, week, or month. 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. 

BubbaNews