Miners Were Right

Gold and silver markets had another steady week -- as we moved into the long weekend and remain poised for a great move into new highs…but they have yet to do so.

We’ve seen these slow grinding moves higher, which have been followed by fast and hard corrections. Therefore, any whiff of a strong correction will see me return to cash quickly. Consequently, keep your wide open eyes for that possibility.

In the meantime, I’m heavy invested in stocks…and they are doing well.  It’s just now a matter of where to lock in gains.

More and more charts are setting up well…so there is no lack of places to put money to work these days.

As for precious metals, they tried to breakout…but then failed --- and are now back in their ranges so there isn’t much to consider in that area for the moment.

Gold lost 1.44% this past week after a failed breakout as the miners indicated last weekend. Last week I mentioned that the miners led the breakout in gold and silver, but then signalled that the breakout would fail -- and indeed it did in the week just passed.

Gold could not stay above the 200-day moving average at $1,220 for long -- and is now stuck back in its range. $1,220 on the upside and the rising lower end of this triangle near $1,190 on the downside.

Triangle patterns are continuation patterns. Furthermore, the dominant trend does remain downward, so chances are best that we might see the next large move to the downside.

Silver fell 2.40% this past week -- and also failed to effect a breakout. Moreover, pilver has a small bear flag now…but overall is back in the range between $17.25 and $16.50.

The trend remains lower so chances are best that the next major move will be lower even though the usual herd continues to tell you the opposite. They’ve been wrong…and will remain wrong until the action changes, which it hasn’t.

Platinum lost 1.77% and is also now pointing to a move lower.  A break under the 50-day moving average at $1,146 should see a break lower to the $1,090 area relatively quickly.

Palladium lost 1.47% this past week -- and almost broke the lower end of the range at $770. This triangle pattern does point to a move lower as well -- and the $740 level should be where we find resistance next.

I hope you’re enjoying your long weekend and this short letter since there isn’t much to say other than the metals tried to breakout, failed, and are now back in their ranges looking for a break lower.

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