Stock Markets Bottomed…But Gold Wants Lower

Stock markets were turbulent the first half of the week seeing major overnight gaps. Consequently, subscribers and I remained in cash waiting until Wednesday when I saw behaviour change. I did a lot of buying Wednesday later in the day and even bought on margin a bit…by accident.

So many buy alerts were being hit that I didn’t really notice quite how heavy I was.  However, it is all working out so far.

Gold backed off resistance as I talked about here last weekend --- and now is chopping around and forming a sharp little head and shoulders pattern which should take it lower.

Gold lost 2.35% this past week -- and is now looking for a move lower which silver is so far confirming.

A break of $1,120 and $1,110 are short levels and also $1,150 if it cannot be bested, after being tested.

If this bearish sharp head and shoulders works and breaks lower, the target of the move is $1,060 to $1,050.

There are plenty of great stocks, which seem to have bottomed now, so I’m focused on trading, and hopefully holding them for a while.

Silver lost 4.83% and is trying to lead gold lower. To be sure, seeing silver close above $14.50 Friday is positive…but I’m not convinced it won’t head lower until it closes a day above $14.75.

The metals have not yet bottomed from what the charts tell me -- and we remain on track for a major low near $1,000 for gold, and $10 for silver, before the year is out.

Platinum lost 0.14% this past week and remains in a wide range between $1,040 and $950.

If gold and silver continue lower, then platinum will follow, as always.

A move and hold above $1,040 would target a move to $1,090…but that is unlikely. However,  I’ve always got to be ready for anything.

I am not trading platinum…but I always watch it and so much else to gather a general picture of things.

Palladium lost 2.58% this past week after putting in a low…and nearing resistance at $600.

We could see a wide range trade between $600 and $525 now, while a move and close above $600 should take us up to $625

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