That's one of the cardinal rules of trading. It appears to me that the Fed is manipulating the markets now, so any trade that goes against that is violating the rule.
One of those trades is to go long on precious metals, like gold. Gold took another beating yesterday.
But, nothing has convinced me though that the fundamentals have changed. There's no effort to reign in the money printing. All the Fed is doing is managing perceptions. However, that's enough to move the markets. So, if you are on the wrong side of that, you can get burned.
Sometimes, you have to take a little pain in order to get some gain. In this case, if the management of perceptions fail at any point, the bull market will return with a vengeance. So far, the Fed's perception manipulation is working. Gold is taking a beating. How much longer, well, who knows?
Al Fin: "Cowboy Commentary", aka "Eat your veggies" The Flag banner is posted in order to defy those who would make patriotic symbols illegal or disreputable.
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