Fugly Friday

Stocks were strong out of the gate this past week and showed some impressive gains with the S&P500 set to break higher…UNTIL FRIDAY. Effectively, stocks and markets cratered Friday, which caused me to lock in some solid gains in positions I’ve held since the Brexit low.

I’m not all cash and short by any means…but I did reduce risk and lock in some gains. Moreover, I’ve got a lot of setups ready to go if we do move higher. Moreover, I now have lots of cash to take advantage of them if it comes. On the other hand if we do continue to show weakness, I’ll be out and into some Short positions in the blink of an eye.

The metals continued to move off support areas and move nicely higher.

Gold gained just 0.59% by the end this past week…but has moved well off support at $1,310. Tuesday saw a strong move higher in gold up near the $1,365 resistance area before falling back for a little rest. As long as we hold above $1,330, then we remain on the move up to the $1,380 resistance level at the top of this box formation.

Gold remains in the very early stages of this multi-year bull market. Consequently, I remain convinced that buying the dips with a view to holding for about three years is the right move.

Silver was flat, gaining just 0.01% this past week. Silver is in no man’s land between $19 and $20 with a bias to moving higher. In general silver looks great for the next few years.

Platinum had a strong week until giving most of it back Friday to end up just 0.50% on the week. If we stay above $1,060 it’s all good. Some more chop between $1,120 and $1,060 is constructive for higher, sustainable prices.

Palladium gained 0.88% as it sets up for another push higher. As long as palladium remains above the $680 area we should be good for higher.

Apparently, the metals look good in the long-term while stocks may be showing some cracks. Let’s see how next week plays out, it could go either way for leading stocks at this point.

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