Stocks Bouncing Sharply While Metals Remain Mixed

We’re finally seeing the bounce in markets take place. Moreover, we’ve got a good mix of leading stocks which are moving well -- and tend to give the best bang for the buck in these sharp moves in our portfolio now.

However, I won’t be overstaying my welcome in these trades as they are likely to hit resistance by mid-week. Consequently, I’ll lock in gains…and most likely look for new short setups to move into.

As for the metals, they had a very mixed week -- and have zero direction at the moment with the dominant trend remaining lower. So let’s take a look.

Gold gained 0.88% this past week and looks good. Gold has a nice little “U” or “V” type pattern, which points to a breakout higher above $1,110. However, it needs silver to move together higher or the gold advance will likely fail.

Early in the week, miners were very weak…breaking down across the board, which told me that gold was going to fall very soon. That signal failed as the miners came back strong -- and gold setup this pattern that points to higher prices.

Let’s see how the week plays out. It does appear to be a positive week ahead as this bullish pattern is now complete and ready to move higher Sunday night and Monday.

Silver gained 0.79% on the week…but can’t get going…which is not a good sign.

When stocks or metals try to breakout and fail, it usually points to a move in the opposite direction. So, while gold looks good, silver is not confirming this yet.

It’s hard to say much with one metal looking good and the other not. Consequently, the picture remains ambiguous.

Platinum gained just 0.12% this past week -- and is also mixed. The noble metal looked set to breakdown…but now it’s rounding up and may give us a little “U” pattern.

I’d look to 850 as the buy level here with potential for a move to the first resistance level at $880. However, $860 is an important area to watch.

Palladium gained 2% over the last week -- and is looking to move higher now. We’ve got a decent looking low in place…with a break above the 21-day average at $511.38 the buy level with potential for a move to $550 where resistance sits.

Generally, markets and stocks are looking for more quick action to the upside, but it won’t likely last longer than a few more days, while metals are mixed for now.

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