NEW YORK (TheStreet) -- Markets remain choppy and in correction mode, and that's why we've mostly been in cash the past three weeks. So many people always want and need action, but this type of market is hard on an account and will chop it up quickly.
Precious metals continue to correct and are not looking great at all. But there should be some consolidation around these levels. We can interpret the charts once we see what forms in the next week or so.
The secret to making it in the long-run is having the patience and fortitude to sit out these periods.
I guarantee you'll be much happier moving forward into a strong market with all your cash ready to go. It's not rocket science, but learning and sticking to the right strategy is key. I work like mad when things are good and try to enjoy life more when markets are as they are now. It's time to recharge, study and enjoy the fruits of our hard labor.
Let's check the charts.
Gold (GLD) fell 2.97% this past week after putting in a two-day top. Last week, I talked about this same top formation being on the weekly chart as well.
This top tells me we should go to $1,260, where we hopefully put in a low before we do some sideways chop and set up a nice buy point for a month or so down the road.
There is a time to be long, a time to be short and a time to be out. We don't have too much more downside to go here, and certainly don't have a good short setup. I'm expecting some more downside in the near term and just watching for now.
So many people will feed you crap about buying this or that and are always pumping action. I don't.
I love times like these, since I can take some time off. But good setups will be easy to spot as soon as they arise. I will be back into stocks or whatever looks best at the time.
Unfortunately, most people can't handle the truth and want a sexy story. Even worse, those stories often end badly. If you want a colorful story, look elsewhere.
Silver (SLV) slid 2.29% over the past week and worse, well back into its large flat base.
Silver needs to test $19 again by the looks of it, and then we just have to see how it handles that level. If we break $19, definitively then there is really no need to look into the precious metals for a while, since $15 is the next major support level.
There are always places to make money, and I know a lot of people still read me for my precious metals thoughts. But this game is not about making money in gold; rather, it's about making money.
Platinum (PPLT) continued to slide and lost a further 1.70% for the week.
Last week, I mentioned that $1,410 had to hold, or $1,390 would be tested. We pretty well did that in the past week. Right now, platinum looks like it's trying to form a bottom around this level. But we need several more days and a move back above the $1,425 area for that to be true.
No rush here. Just wait.
I think it was Jim Rogers who said he mostly just sits around and waits for the easy money to come to him, or for a great setup. His track record speaks for itself.
Palladium (PAL) lost 2.45% this past week. Even though palladium had a great chart and a superb breakout, it just can't shake the monkey off its back.
It needs the other metals to join in or confirm its move, and that just wasn't happening.
There is nothing wrong with being wrong, as long as you can admit it and get out at cost or for small losses -- then try again when the odds are stacked in your favor.
If you play poker, you know you don't play every hand. Sometimes you have to fold and take a smaller loss before things get out of control. I'm far from a good poker player. But, using simple rules and basically waiting for good cards, I ended up in the top three in each round of a friendly tournament not too long ago.
I was probably one of the least experienced poker players there, and I heard it. But I was the big winner of the night by simply having some patience and waiting for the right cards.
That is where we are now in the markets.
No matter how skilled you are, someone with more patience will win in the end.
On that note, you can find out more about what I do for members at www.wizzentrading.com. Thank you for your time and reading. Have a great week ahead.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.