Gold stocks remain on short-term sell signal, and if we are in a bull
market, prices should find support at the 200ema (exponential moving
average), which may be an excellent entry.
There is a divergence in place, and as we have often observed, such
divergence can lead to a multi-week correction.
iShares Silver Trust (SLV): We are short from 16.25 with stop now at break
even for a free trade at worst.
Summary
We took a short position on SLV and will look for more set ups in the sector
to take advantage of a multi-week correction now in progress.
Jack Chan is the editor of Simply Profits, established in
2006. Chan bought his first mining stock, Hoko Exploration, in 1979, and has
been active in the markets for the past 37 years. Technical analysis has
helped him filter out the noise and focus on the when, and leave the why to
the fundamental analysts. His proprietary trading models have enabled him to
identify the NASDAQ top in 2000, the new gold bull market in 2001, the stock
market top in 2007, and the U.S. dollar bottom in 2011.
Disclosure: 1) Statements and opinions expressed are the opinions of
Jack Chan and not of Streetwise Reports or its officers. Jack Chan is wholly
responsible for the validity of the statements. Streetwise Reports was not
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All charts courtesy of Jack Chan.
