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Markets and stocks had a solid week until Friday when
weakness set in hard off resistance.
It looks like we aren't quite ready to move higher unless
we can see markets come back strong Monday but we do have several of the
heavyweight leading stocks set to report next week so that may change the
market landscape dramatically and quickly.
I am a bit surprised though, with good numbers coming
from the video streaming company, that stocks didn't perform better to close
out the week but that's how it went.
The stocks I'm holding have done very well and are still
solidly above our buy levels for now and are holding up well but I may have
to do some selling if that changes.
As for the metals, gold and silver didn't do much but
remain set for a move lower so let's check those out.
 
Gold lost just 0.36% this past week and did put a glimmer
in the eyes of the perma-bulls early on before fading out.
Miners had a strong day Wednesday as well before giving
much of those gains right back.
For a move to work, it must really come out of a solid
base and I'm not seeing any of those in the miners space.
Gold has to move and close above the 100 day moving
average at $1,210 to start, then must break above $1,220 on heavy volume and
on a closing basis in order to cancel out this bearish pattern.
A break below $1,190 is the more likely scenario and that
level could be shorted with $1,170 as the first stop.
The major trend remains lower for gold and I'm not really
seeing much that compels me to trade it either way at the moment.
I'm much more focused on leading stocks who move very
quickly such as one we rode in about a week from $14 to $21.
Those are the moves I am really looking hard for and
putting in long hours doing so.
The biotech space is providing those types of returns
quite regularly these days but we are still far from any type of speculative
blow-off type of move which just means we have a while yet to run in this
bull market, perhaps even as long as a decade or more if this is indeed
another secular bull market.
I am always focused on the strongest sector no matter
where it is and it's obviously not in the precious metals arena.
Silver lost 1.46% this past week and has a much cleaner
chart than gold.
The twin peaks pattern I mentioned to subscribers a
couple weeks ago is working quite well although that pattern is best when you
see a very violent plunge off the peaks.
Anyhow, we've now got a bear flag set to break and that
should take gold with it.
The $16.25 level could be shorted with the next support
lying at $15.75, then $15.25.
You can use silvers cue to short gold since it should
follow once silver breaks.
Platinum lost 0.20% for the week and remains in this
uptrend channel with resistance at $1,180 and $1,200.
It really looks like $1,180 will be as high as platinum
can get and it will follow silver lower once it breaks its bear flag.
Palladium gained a respectable 0.91% this past week and
has so far bested the $780 resistance area but there is trouble not far
overhead.
Resistance sits at the 100 day moving average at $790 and
then $800.
I don't think we will see palladium close above $790
since silver is leading and looks ready to break lower anytime now and it
will bring the rest of the precious metals with it.
That means that the ideal short trade in palladium would
be to see it break above $788 during the day but then move back below it and
close the day under it and that would be your short signal.
That would give you an easy $20 to the downside to $770
and then the $750 area if you're trade horizon is a tad longer.
Have a great weekend and try to find the best stocks in
the best acting sector, or let me do it for you and join my nightly Daily
Trade Ideas letter.
Thank you very much for reading and you can find out more
about what I do for members as we focus on leading stocks for the most part
at http://wizzentrading.com
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