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Stock Markets Bottomed…But Gold Wants Lower

August 30, 2015

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

Generally, the metals are nothing special -- and will follow gold and silver if they continue lower as they appear set to do while stocks markets look to have more to run on the upside.

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Warren Bevan is a renowned trader who’s honed his craft over the years learning the styles and techniques of Jesse Livermore, William O’Neil and Dan Zanger and forming his own unique style. He focuses on making money and going hard when the right markets present themselves and during the rest of the time focuses on capital preservation. He focuses on the leading fast moving stocks during the good times. He is a proud Canadian, traveler, explorer, and consummate market geek who tells it as he sees it. Warren’s website is www.wizzentrading.com and his email address is [email protected]