We had a very quiet week all in all in terms of the markets and most
stocks with some moving well but many failing their moves higher.
The volume absolutely dried up this past week with Chinese New Year in
full swing as I warned about last weekend.
Gold and silver were absolutely hammered back to strong support levels
as a result of no Chinese buying.Its no fun, but its great if you are a
bargain hunter with gold and silver on sale here now.
In fact, I took a small position in a gold
ETF late Friday as a low looks to be in here now but only time will tell.In this type of market I had to take a small
position and not risk much.
a long weekend so I wont really find out if Im right or not until Tuesday.
squeamish at all then dont continue reading.The
precious metals charts are bloody!
Gold was slammed 3.43% this past week.It
sure feels like it was more than that thought.
Last week I talked about the triangle within the large descending channel.It looked ready to break higher but with the
Chinese on holiday I warned that their lack of buying could see gold fall.
Gold never hit the buy point and broke its uptrend line and 200
day moving average and never looked back.
at the very low end of the large descending channel which should mark a low.Using 15 minute charts Friday I saw a low put in and
was trading around that. There are a lot of sign that a low is now in and
with the Chinese coming back into the market this coming week we will soon see.
looking for some physical gold, now looks to be a great time to lock in
prices and if you want to trade it Id say only use smaller
positions for the time being.
This coming week Id like to see us form a bit
of a steep U type of pattern and head back towards $1,660 where the 200 day
average is sitting.
My trade is looking for a quick profit and I will be booking it
quickly as this chart will take some time to rebuild now and the real
breakout which will present a longer-term trading opportunity will not be
here until we break out of this large descending channel.
This can change as the chart evolves but so far thats what Im
Silver took the brunt of the smash falling 5.12% on the week.The $30 area is support for now and although we did
close a little below that level we should at least see some consolidation
here before we can get a better idea if this is the low or not.
Silver did not snap back nearly as well as gold did so I am not
risking a trade in it here.
The volume was strong on the push lower which is never good but it is
what it is for now.
Some may come up with lots of reasons for gold and silver being hit
but the fact is the charts said to do nothing until gold and silver broke one
way or the other.Charts talk to me and I listen.
Sometimes they tell me to sit and much less frequently they tell me to
buy or sell.
Platinum could not shrug off the weakness in gold and slipped 2.08% on
the week.I warned subscribers that the chart was
getting pretty sloppy and that is always a sell signal.I
recommended taking profits into strength mid-week and that ended up being the
right thing to do.
Always, and especially in this type of choppy market, you have to take
partial or total profits into strength.
While this market is tough there are ways to make some money, albeit,
not huge gains but smaller ones while being quick and employing tight stops at the breakout levels.
The bull flag in platinum only ended up working for a few days as is
so typical of todays
type of moves.
The market is a game, have no illusions, it is a game and its designed
to take your money.Weve got to constantly adapt and interpret what type of
in and adapt our style to it.Right now taking
profits quickly on the way up, or down, is key to survival.
There are times when you can let your imagination run and envision
that new Ferrari in the driveway but now its best to focus on taking
quick profits and minimizing any wrong trades with small losses.
If you can do that then youll quickly wake up one day with enough cash to buy
that Ferrari after-all.Discipline and understanding
your emotions and tendencies will get you there more quickly than you can
Palladium help up much better
than the other precious metals this past week actually rising 0.89%.
So far the 21 day moving average is the buy point and its an
easy trade since you can buy right there and have stops even pennies lower.
It does have a double top in place now but we really have to drop
below the 21 day moving average to confirm that.
Although palladium held up extremely well its hard to get in here
since chances are it wont move too quickly to the upside with the other
precious metals so weak.
Markets are closed this coming in the U.S. Monday so that means a long
Enjoy the long weekend and have a
great week going forward and thank you very much for reading.
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