Gold: Building a Base or Just Chopping Like Crazy?

NEW YORK (TheStreet) -- It's another choppy week for markets, with no real direction. It's still very hard to catch a winner. We saw one stock we've been eyeing for a while build a super base. It broke out Thursday on heavy volume -- usually a blueprint for success. But it turned around and failed the breakout right away on Friday.

You know the market remains dangerous if textbook breakouts still fail. The precious metals markets are chopping around as well and are not anything to write home about.

I remind you that not trading is trading. Sometimes you just have to wait for setups. That is still where we are. It takes time to build nice bases which can move stocks.

Let's check the metals charts and see what moves would constitute a breakout or breakdown.

Gold (GLD) rose 0.26% for the week as it just chopped around in its range. There is nothing to do until we break out above $1,320 or break down below $1,280.

To me it looks like we will move higher out of this nice, developing base. I love this flat base. It should lead to a nice upside move when we break out higher. But I do not know when that will be. It could be right away or it could still be a few weeks. Until the move begins there is no point in trying to trade it unless you're a day-trader.

We did see some decent moves on a daily basis in this base last week, but those moves reversed the very next day. So being quick and not greedy is key if you are trying to trade the moves. As as so often happens, the moves generally come in overseas action while I'm fast asleep.

Unless you can trade futures and don't sleep, gold is a tough metal to trade right now.

Patience is so important to success and it is needed now.

Next up: silver.

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