I know there are a lot of people that have invested in precious metals over the years and have a lot of money on the line. They are searching for answers, and the best advice I can give going forward is to not hold a long position when price is under the short-term moving averages, no matter what your outlook. I go into these strategies more in-depth with subscribers, but that will protect you more times than not. Occasionally at TRI we will take a small trade with tight risk management if price crashes, but these are exceptional times right now and even that is not working.
I know how difficult this can be and I will do my best to offer up daily advice as far as positions and risk management, because right now the market is signaling deflation. I can’t predict the future, and until price moves above the short-term moving averages with conviction the bears will remain in control of this market. Do what you need to do for your balance sheet and mental well-being, and I will offer up my best risk-management going forward. Right now, I can not recommend any long position based on upward momentum and cycles, as the technical damage is extreme. Yes, it could be a whipsaw or a bear trap, but there will always be another trade on another day. Managing risk comes first in this game, profits come afterwards. All the best.
Good trading all.
Steve Chapman, TRI