And Just Like That…It All Changed

An absolutely massive week for leading stocks. I’ve talked recently about the ability to keep it small during the tough times…and go heavy during the good times.  And things turned good this past week.

After one leading company reported great earnings and gaped up large overnight, other leading stocks’ and markets’ behaviour change instantly to very positive.

Much of my life has and does revolve around markets and stocks. Consequently, once you become really dialled in, spotting changes becomes easier. It takes time, much study and a bit of luck to see and feel the changes.

So, after about a year of poor action things have changed in the blink of an eye. So far so good,   but I’m always watching closely, because things can just as quickly revert to poor.   However, I do hope we can make this run last until May or so…or longer.

As I’ve said on numerous occasions, I think we have another couple or even a few years left in this bull market -- and the fun/blow-off phase is yet to come.

The metals continued to behave well -- and are now taking a much deserved rest.   So we now have to watch for higher lows.

Gold gained 1.08% on the week and is now stalling out at the $1,300 resistance level.

Nothing goes straight up for too long unless it is the end of a major run.  So now it looks like gold will pull back and take a rest.

Two steps forward and one step back is great action.

So now we look for a higher low around the 200-day moving average or anywhere from $1,260 to $1,240.

I’m more focused on leading stocks right now…but gold is acting good and very trade-able if you’re so inclined.

Silver gained a solid 3.04% for the week and is finding the 200-day moving average too much for now.

Gold is still leading silver.  Apparently silver is also looking for a rest now.

A nice pullback to the $17.50 area to put in a higher low would be ideal -- and it seems to be the scenario playing out.

Both gold and silver should have a new higher low in place within 8 or so days now -- and then they can turn up again.

Keeping it simple is usually the best way forward…so I try not to get too caught up in the news events like ECB QE, coups or politics.  Price change and volume are all that ultimately matter.

Platinum was flat, gaining only 0.13% this past week. Platinum has a nice bull flag formed here that should move us higher anytime now.

With gold and silver looking to roll over a bit, we could see platinum move back to test the $1,250 area if we break under the lower level of this bull flag at $1,265.

Palladium gained 2.39% on the week -- and I’m not so sure where we go from here.

This small triangle/wedge is a continuation pattern lower.  With gold and silver seemingly set for a small pullback, palladium could break lower.

On the other hand, gold and silver are strong in the general context of things.  Therefore, palladium’s triangle pointing lower may be a false signal. The tip-off to which scenario plays out would be a move above $780 or a break under the $760 area.

Generally, we are seeing great action from gold and silver that is looking more and more like a major low is in place. However, I’m still not 100% certain of that.

I’m very focused now…and putting in the long hours required when markets are behaving well.

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