Great Gold Action While S&P500 Stocks Flounder

Stocks continue to hold up…but aren’t acting strong by any means. I remain in an all cash position as we may still be setting up for a try into new all-time highs in the S&P500, but at the same time, we may see some volume come in to push us lower in the week ahead, which would force my hand into some short trades.

The metals, mainly gold, were strong and continue to act great as the trend higher becomes more and more solid. However, it’s still in the very early stages.

Let’s take a look at the charts which are trending nicely higher.

Gold just gained 0.40% this past week…but it held key support and setup a nice pattern to now move higher. Great action for gold as it tested the key $1,280 breakout level…and is now set to break above the bull flag.

Gold is acting great. Moreover, dips can be bought as this newly changed dominant trend to up is now in full force. This new leg of strength should last at least three years, so I’d consider this a long-term trade.

Gold has stronger resistance overhead at the $1,310…then $1,420 in time.

Silver lost 2.15% for the week…and is looking a bit weak here with a 2-day top early in the week. Nonetheless, $17 is a decent support area still…so I’m not expecting for much more downside.

$18.50 has been a target on the upside now for weeks -- and we are nearly there. The bull market has resumed and looks great for the next few years with new highs above the $50 area all but certain.

I’d look at buying dips and holding until we see another blow-off type of spike top…such as we saw back in 2010. After $18.50 we have to look up to $22, then $26 as major resistance areas. However, they will take some time to hit.

Platinum gained 0.26% this past week as it continues to move higher with small consolidation periods along the way. This $1,080 area is resistance on the weekly charts…so a little more consolidation around here would be fine. And then once we breakout above $1,080 we have to look to $1,180 as the next resistance level on the weekly chart.

Palladium lost 2.35% this past week and may rest a bit more before continuing higher. We may see palladium retrace back to $570…but the trend is now nicely up. $580 is also nice support, when I look at the weekly chart. So more consolidation around here would be positive.

Also, on the weekly chart we have to look way up to $685 as the next resistance level to target in time.

All in all, not a bad week for the metals…while stocks are acting weaker but still not breaking lower with much force.

It’s a nice time to be in cash, as I am…and also a good time to begin to buy the metals using weakness.

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