Will Traders Jump To Precious Metals In Times of Uncertainty?

THE WEEK

This week Federal economic announcements were once again destroying the Market’s Price/Action.  Wednesday FOMC released their meeting minutes where they mentioned the words “slight recession” and the reaction in the Market was all over the place.

The next day the CPI was released followed on Friday with the PPI.  For the past year the trading herd has reacted to these strongly reports and not always the way you would logically think.  Welcome to more Market chaos and certainty.  I feel like a broken record.

LOOKING AHEAD

This coming week starts the heavy earnings announcement season.  Some of the financials have already announced with very strong data.  I also note that gold is gaining with strength. Precious metals are many times thought of as a way to hedge trades as more fear and uncertainty take over.  Look at GDX or NUGT as possible trades going up.

HOW AM I DOING?

You have to have trades in place to make money  - or to lose money.  With the uncertain direction and volatility, I decided to sit out this week for the most part.  The only trades I did all week were quick in and out trades after economic announcements. 

DATA class series starts on Thursday.  You can learn more HERE.

This week’s Deep Dive on our investing Buddies webinar 

will cover swing trading with stop losses in place 

to take advantage of the wild price action we are seeing in the Market.