Late last week Gold and Silver were rallying looking to breakout to a new trend. We continued to stay short waiting for a reason to reverse. As it turns out there was no reversal in the metals, and they appear headed lower once again.
Last week I received email after email talking about the news and how we could possibly be short the markets. Many traders and investor make the crucial mistake of trying to trade news, which is always wrong. Those who trade the news always lose.
The most important piece of any market is price nothing else matters. Price dictates movement, price knows the news before it ever hits the street. All markets care about one thing which is price it’s the only thing that really matters. By the time you hear the news its old, if you try and trade it you lose.