Although gold and silver closed higher on Thursday, their overall action was bearish, in line with current trends. The fact that both have failed at significant resistance levels suggests that lower prices lie ahead. The trends have been reaffirmed and we are ready to add our current short positions on rallies.
Gold and silver are in similar formations and both in declining trends. There is no doubt that they will one day enter an upward trend, but we will stay with the current trend until it changes. We do not sell tops or bottoms. We try to get the meat out of motion. As investors, we are always long metals through the physical markets.
Many think the markets are manipulated and FED targeted. Suppose this is true; the price action and the footprint should still appear in the trend of some kind. The map that leaves the footprint is the same, whether true free market or manipulated market. We know that the Fed is out of control and has destroyed the price for free market discovery. However, price action creates price discovery.
To quote my grandmother, it was lovely to bet on Harness Horses, which we always thought was right. She had one remark: May I bet on the crooked horse!
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