Halloween Hell For Metals

Markets were strong as suspected… as the charts predicted with leading stocks really doing well.

This is a very strong time of year historically -- and it looks like this year will be no different. We generally make a good portion of the year’s profits in the couple months before Christmas.

It really doesn’t take much time to make the year’s gains great.  However, being able to wait for the right conditions to appear is very hard for many investors, but not for those who trade with me.

On that note, my real-time trading service is open again but only until Monday.  You can sign up at http://www.wizzentrading.com and it is only $100 a month, or $250 for the next 2.5 months.

You will make very solid returns.

Metals fell right on schedule as I’ve been forecasting. Moreover, I did actually short some gold using a 3X ETF.  We did very well, quickly, although it could have been much better. I thought gold might rest a bit near $1,200 but it did not.

3X (short) ETFs are not for holding for any amount of time.  However, I should have held for two days instead of one…because we could have banked 53% profit instead of the 16% we did.

Gold’s fall was spectacular.  And it looks like we are finally breaking below the $1,180 area with a view to heading to $1,000 by year-end.

Gold declined 4.69% for the week, which has all the perma-bulls reeling to find (i.e. fabricate) an excuse why.   I’ll tell you why.  Because the chart said so.

Last weekend in this letter I said gold was rolling over and did not look good. As the week progressed, I told subscribers that gold was ready to roll over harder…and it did right on schedule.

The excuses and talk of gold raids are fine and dandy, but the fact is, if you can read a chart, none of that matters since the chart told us gold was in trouble.

Now that gold has fallen below $1,180 on a closing basis including daily, weekly and monthly charts, it is a strong sign that $1,000 is the next target.

We are now on the way to the real blood in the streets moment I’ve said we really need to see.

We will see perma-bulls ruined and shaken and finally coughing up their gold in the months ahead.  There is some support around $1,100.  But really there isn’t anything that might slow gold’s decline between here and $1,000.

I will be looking to short gold and perhaps silver on strength in the months ahead  -- and we should do pretty well considering how violently they can drop.

Silver dramatically lost 5.96% during the week.

Silver could never get going on the upside, even while gold tried to bounce.  But alas, gold came back down – and is actually leading silver lower.

Nasty, nasty action on huge volume. The major support level I’ve been talking about for a long, long time at $15 is now right here.  Moreover,  if silver fails to hold $15,  the next major level to watch will be $10.

It really does blow my mind how people can so blindly follow writers who come up with all sorts of fancy explanations of why the metals are falling.  Sure, it may sound great and exciting, or that you are part of a great good team, but the fact is, they have lost so many people so much money.

The arrogance and madness of people never seizes to amaze me.

I make money, and I try to help people make money as well.

I don’t care if it is gold, cars or pills.  I make money.

This trading game is about finding the hot sector and getting into it, not sticking with an asset class once its rise has ended. To be sure some people are stubborn and always will be.

Platinum lost only 1.08% this last week in the face of much weaker gold and silver. However,  it will not hold up in the face of more weakness.

Platinum follows gold and silver, it really is that simple.  There is some support here at $1,200 for platinum but below that we are looking at $1,000 for some support then the $900 to $890 area.

I may consider shorting some platinum on a good break under $1,200 since a $200 move lower would be fun to grab!

Palladium actually gained 1.55% this past week in the face of major breakdowns from gold and silver.  Palladium still looks great with a nice double bottom I pointed out here two weeks ago.

A break above $800 would be a buy level and take palladium to $840 if all was right in Kansas, but it’s not.

As always, palladium won’t be able to rise for long if gold and silver continue to be weak. Palladium does follow gold even though it has done so reluctantly and perhaps on a bit of a delayed basis.

So while palladium does look great on a break above $800, in reality, I’d look for a break above $800 to fail which means a short could be taken once palladium shows the failed breakout and moves back under $800.

Well, hopefully the candy this weekend was sweeter than my report to you but the fact is I’ve been telling of this move for a couple years now as it has unfolded in front of our eyes.

********

If you’ve not heeded my words to date, perhaps it is time to give it a try.

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

In my free, nearly weekly newsletter I include many links and charts which cannot always be viewed through sites which publish my work.  If you are having difficulties viewing them please sign up in the right margin for free at http://www.wizzentrading.com or send an email to [email protected] with “subscribe” as the subject and receive the newsletter directly in your inbox, links and all.  If you would like to subscribe and see what my portfolio consists of please see here.

If you found this information useful, or informative please pass it on to your friends or family. 

Free Service

The free weekly newsletter “Wizzen Trading” 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 “Wizzen Trading” 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 “Wizzen Trading.”