Shake And Bake

Most markets continue to show some strength, albeit slowly. We continue to march higher and higher regardless of the many people calling for a correction. While a small pullback would be great, the simple amount of scepticism tells us that there is a ton of cash on the side-lines waiting to come in.

We may have gotten the spark needed to suck in some of that money Friday, when China cut interest rates.

As for the metals, they remain strong and moving off  lows, although it has been a bit of a wild ride, which always brings out the regulars who just love to tell me I’m wrong.  I didn’t bother writing them back Friday after Wednesday’s large decline was erased and bested !

The markets try to shake as many people out as they can. To be sure Wednesday sure did do that. But once the day was done, all gold did was test and hold the breakout level which is a strong sign.

Gold ended the week up 1.14%...and is moving well, as I said it would.

Let’s keep it simple. Gold is moving slowly higher off lows and moving nicely between support and resistance areas, building consolidation along the way, which is needed to form a base to move higher.

There are Resistance levels every $20 up to $1,260 (marked on this chart).

All in all, good stuff -- and we are still long some gold via an ETF that represents certain miners …and so far, so good.

I’m not really yet sure if a major low is in place, but this low is holding great for now. However, a break below $1,180 would make me change that view..

Silver rose 0.74% for the week and is now following gold’s lead. Silver has resistance every 50 cents on the way up…and may go higher.

I’m not too interested in miners at the moment..except for a select few which I talk about with subscribers.  But that could change if miners take up a good chunk  of the money that is sitting on the sidelines -- and it will not be hard at all to tell if and when this does happen…but so far it hasn’t.

Platinum gained 0.80% on the week and is building a nice base platform to move up from anytime now. $1,250 then $1,275 are next and then there really isn’t much to hold it back from moving to the $1,450 level. But I will talk about that as it is happening in the weeks ahead.

Palladium gained a solid 3.29% this past week -- and is moving very nicely inside a super looking flat base. This basemight last quite some time…but it won’t.

Once gold moves higher, this base will be broken and a break above $800 could be bought with $840, then $880 as target or resistance areas.

All in all, the metals continue to look great no matter what you or I say.

I can be wrong, but the charts are telling me I’m not, and that is all I do here. I do not provide a wild opinion or half-truths.  I just tell what the chart tells me and it continues to be a nice story.

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