For Gold Bugs, Time Is on Your Side

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.

If you liked this article you might like

Gold, Google, SEC Hack - 5 Things You Must Know Before the Market Opens Thursday

Here's the Hottest New Way to Get Rich With Gold

How to Invest in Unstoppable Gold Prices

Novice Trade: Gold ETF

Will Gold Make You 25,000% Richer Like Bitcoin?