Gold, Silver, Oil & Natural Gas Trading Analysis

The rising tide lifts all boats, and that is exactly what we saw last week. Gold, silver, oil, natural gas, and stocks all put in a solid bounce last week.
All our funds put in solid moves with GLD, SLV and GDX all breaking out of their down trend channels which is bullish. While they have generated breakout buy signals we continue to wait for more price action to unfold before putting our hard earned money to work. Each of these funds currently have over 3% down side risk so no position will be taken at this time.
During breakouts is when “Breakout Trader’s” take positions which surges prices higher once the resistance level is broken. While this method can produce big gains, I tend to avoid this method because of two critical points. First, downside risk is generally 8+%, and second breakouts have a high failure rate.
That being said we continue to let our funds/commodities unfold so we can enter when risk is below 3% and the odds are more in our favor.