|
It was a down week in US markets but
many of the leading stocks held up very well or even moved quite a bit higher
in a few cases.
Gold and the rest of the precious metals
were also hit quite hard on more of the same, which is, talk that
quantitative easing is no longer needed at this time.
It’s Groundhog day all over again
as it’s a mirror image of when gold was hit a few weeks ago.
I don’t believe there is no QE, and see no evidence of that as the
Federal reserve is still funding something like 60% of the US debt.
They are printing new money to buy this
debt. That is QE in my books.
As it’s a long weekend that I desperately need I’ll be short and
respect your time and mine as well.
Metals review
Gold only fell 2.31% this past week but
the manner in which it fell was once again pure manipulation and a total
repeat of what occurred back on March 13th. Once again at the exact same time
that talk of no more QE occurred a copious amount of
gold was instantaneously dumped on the market with no effort at all to get
the best price for the sale.
Gold dropped over $20 before I could
even throw out a tweet about it! While it is very frustrating getting my
pockets picked over and over again by the same pickpockets I am still up
large over the past decade and I can wait it out until the blow off top comes
in the years ahead. As for the mining stocks they’re hurting as per
what seems like usual and I don’t mind as I know I own some great
companies which will show me many many multiples on
my investments over time but what bugs me most is that subscribers get hurt
and sometimes don’t have the patience or faith/knowledge/understanding
to stick with this major trend.
For now the 61% Fibonacci level is
holding up well enough here after being pierced slightly in an attempt to
overrun the longs. There is definitely strength buying this weakness and that
is evidenced by the strong support shown here at the $1,625 area. Last week I
was quite confident that a bottom was in but I did not foresee another major
round of manipulation occurring. My crystal ball broke a few years ago and I
just never replaced it yet! We’ve got to hold this level or risk moving
to test the $1,600 level and then the $1,575 level.
Volume was heavy in both the GLD ETF as
well as the futures market as would be expected on such a fierce forced move
lower. Right now things remain looking pretty ugly but that can change in a
few days. We’re definitely in oversold territory here but it doesn’t
mean we can’t go lower, especially with a push of tonnes
and tonnes of gold being sold at the same time.
Yes, it’s sick but it’s life for now and
we are winning the war, but have been bloodied so far in 2012 after losing a
couple key battles.
SIlver faired better than gold only falling by 1.52% this past
week. The $33 area is a very strong resistance level and could not be beat,
and even if it had been the blatant takedown of gold gave silver zero chance
of holding up for the week.
So we get another chance at sale prices
for physical gold and silver here and that’s not necessarily a bad
thing in my books, although it’s frustrating.
Silver has support at the $31 level and
slightly below that at the Fibonacci retracement level. Volume was heavy on
the move lower in the futures market as well as the SLV ETF. A long weekend
to try and forget about this past weeks moves in
gold and silver is just what the doctor ordered.
Platinum fell 2.17% for the week and
remains within it’s wedge pattern although
the lower level was pierced on an intraday basis but that is very healthy as
it closed the day back above the lower level of the wedges pattern which
gives it even more validity.
While last week it looked to me as if we
were nearing the resolution of this pattern higher, Wednesday spared no mercy
to any precious metal. Volume was heavy on the way down and then also as the
price was pushed back above support.
I think we should hold this level here
in platinum and slowly work around in the wedge until it’s resolution
is seen and I still think that will be higher.
Palladium looked to have found it’s bottom last week as the measured move lower
from the head and shoulders pattern was hit along with the 50% Fibonacci
retracement level.
But it wasn’t meant to be once
gold was hit, nothing could hold up. We’ve so far held the 61%
retracement level and are on our way back above the 50% retracement level
where I believe the true support to be, not this fake support level that was
forced upon palladium and other metals this past Wednesday.
Heavy volume was seen on Wednesday's
move lower in the futures market but it was followed up Thursday with quite
strong volume as well as it snapped back. What's most interesting is that the
PALL ETF saw only mediocre volume on Wednesday’s move lower while
Thursday’s move higher saw very heavy volume. This tells me traders
think the low is in and are pushing the price higher now and I couldn’t
agree more with them. Whether this is indeed the low I can’t say as we
just never know when a huge amount of precious metals will be dumped on the
market in order to take prices lower still but for now the low looks to be in
for palladium at least.
Fundamental Review
President Obama just signed a bill which contains stricter regulation when
it comes to lawmakers who profit from their decisions and there are many
who do. It’s not fair that those in power can use inside information to
conduct what has so far been legal insider trading. Many members have
literally made millions off of this.
The problem stems in my view from the lack of pay that they receive. First
off, there are too many of them to begin with but let’s begin at the
top.
The president makes a measly 400K a
year. Really, while all his expenses are covered, this still isn’t a
whole lot of money for the President of the US. Why they don’t try and
attract the top business minds in the country by offering a huge salary, even
as high as $1 billion a year is beyond me.
If we had true business people running
the country they would quickly eliminate the massive amount of waste and true
inactivity that is so pervasive throughout.
Give him a bonus for performance of
maybe 10% of what they eliminate in unneeded spending and maybe even a larger
bonus for maintaining the standard of living or even improving it, and I
assure you it would improve immensely if the red tape were burnt all
together.
Let the citizens do as they please
within reason and success will succeed while failure will fail. Isn’t that
what freedom is all about anyhow?
I won’t go into a huge rant but I
think I’ve got the point across. We need true leaders, not hot air
blowing speech givers who need a teleprompter 24/7. A true leader should be
able to have his notes and speak from the heart and feel the crowd and
emotions and thrive off it and give the truth whether it be
good or bad. We can handle it.
John Paulson has seen his gold fun
lose 13% in March. I can sympathize with him as most of my mining
shares are also down as I’m sure of you all know. He still calls
gold his best long-term bet and I agree.
The good news is that many mining shares seem to have been sold out
already and are not falling dramatically after this past weeks raid on gold. This is great as it says it’s
time to buy as the bottom has been hit or is very near here.
I’ll leave it here this long
weekend and I wish you a Happy Easter and a restful few days off, I know
I’m grateful for it.
Warren Bevan
www.preciousmetalstockreview.com
If you found this information
useful, or informative please pass it on to your friends or family. You
can subscribe by visiting www.preciousmetalstockreview.com and adding your email to the
newsletter signup found on the left of every page.
Free Service
The free weekly newsletter “Precious Metal
Stock Review” does not purport to be a financial recommendation
service, nor do we profess to be a professional advisement service. Any
action taken as a result of reading “Precious Metal Stock Review”
is solely the responsibility of the reader. We recommend seeking
professional financial advice and performing your own due diligence before
acting on any information received through “Precious Metal Stock
Review”.
|
