Gold and silver remain in the torture chamber of congestion, meaning there is confusion on which way the market will break next. The trends in both are higher, silver looks better than gold and both should continue to make new highs.
However, the pattern itself suggests investors and traders are confused. This type of action will typically cause many to make bad decisions in their trades and investments. Markets and congestion will always break out in one direction or another. Although the Bulls and the Bears are being confused with this recent action, our expectations are for a breakout to the upside.
Understanding the congestion set up is a huge part of successful investing and trading. You need to realize that markets will often break out in the direction they had been trending previously. The key to congestion trading is patience, discipline and letting the pattern resolve itself. The trend is up for gold and silver; we continue to remain long.
Platinum is also in congestion and should break to the downside. We expect the bear market in platinum to continue. Typically, trends will end with a blowoff formation, which we have not seen in any of the metals yet. This leaves us long gold, silver, and short platinum.
Saturday Micro Mini Recording: Saturday did a great webinar on our micro mini futures portfolio models. I have attached the recording for your viewing pleasure.