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It’s certainly a challenging
time still for gold and silver but the long-term reasons for holding physical
gold remain in place.
I hold them to protect my purchasing power in this time of worldwide
government overspending.All other reasons stem from
this central theme as currencies are being debased on a global scale.
That said, it does look like we are heading into a period of general
bull market conditions which should see stocks and markets soar and the
precious metals may remainder pressure as a result.
The markets were pretty choppy all week and I mostly sat in cash
waiting until Friday when some fast movers moved and I took advantage of it
as I was highlighting these buy areas all week for subscribers.
It’s now two Friday’s in a row that were great days. I could get used
to just working one day a week but thats not how it works
usually, unfortunately.
Let’s take a
look a the precious metals charts but gold and
silver are nothing special still and an avoid unless youre very skilled and quick
and just looking to pick up small moves.This is not
my type of trade so I’ll just watch.
It’s so
important to be able to sit and wait for the right setups. Saving mental and
real capital is key to long-term success and getting chopped up and stopped
out of trades constantly does add up.
In my experience it’s much easier to observe and catch up
on homework or other such tasks than to try and trade small moves.
And yes. I did learnt this the hard way....a
few times!
Gold was all but flat having risen only 0.53%
this past week.Were
still in this bearish downtrend channel and looking to test the lower end
under $1,620.A signal that we are ready to go there would be a close under
the 200 day moving average at $1,664 and a break of the uptrend line right
there at $1,660.
I generally avoid shorting gold and I will again here.
Now we just observe the action and wait for some sort of bottom signal
or setup to consider a long position.
There are much easier ways to make money today than trading gold in my
view.
Silver had a respectable week rising 1.86% but it’s not at all looking like it wants to
go higher here to me.
Silver has a good sized triangle pattern here and a move out of it
either ways could be either bought or shorted.
The $31 level is showing its head again here as it’s
a major support level. A move
under $31 will see a quick move to at least $30 on the downside.
It’s no fun
when we have no trend and we don’t in gold and silver but we cant
control the markets so we have to accept that and look for better trading
opportunities.
I get emails sometimes from people wanting me to show them buy points
in the precious metals.I can’t just make them up
and won’t try to pretend to.They will come in time.
And to that point I don’ t understand why
people have such an emotional attachment to only trading the precious metals.
I personally don’t care if I am trading a large tech company, an oil company,
gold or anything else as long as it has a god setup and I can make a good
return on it.
Why does it matter what label something has as long as it can make you
money?
That said, I do hold physical gold and silver as my security blanket
but they really aren’t making me any money these days, it’s the leading
stocks that are my bread and butter in terms of earnings.
I am not a gold bug, I just want some
insurance and protection in terms of purchasing power.
Platinum fell 0.54% for the week but looks great here for higher
prices now.
It’s got a
wacky type of cup and handle or almost a W pattern here and this handle or
bull flag is just right.
The bull flag is nice and tight and should move now, like Monday!
If I do take a trade in this position I’ll be using the PPLT ETF.
I have highlighted this in my trade ideas for subscribers this coming
Monday so youre
on an equal playing field with them in this case.
Palladium rose another 2.12% this past week and is in fine form after
breaking free from the $700 area Ive been talking about in these free weekend letters
since December 2012.
The buy point has long passed now some $60 ago and platinum now is the
setup to keep an eye on.
All in all palladium has great action and is looking for higher prices
still from here.
To my eye it looks like a move to $800 is a given and it’s hould happen relatively quickly.Perhaps within a moth
or so.
Enjoy your super Superbowl weekend .I plan
on indulging in far too much food.
Thank you for reading. I hope it adds some value to your investing and
trading thoughts.
Warren
In my free, nearly weekly
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