Stock Markets And Precious Metals Are Still Choppy

Stocks are exhibiting more choppiness and weaker action these days as we move back into earnings’ season. This motivated me to exit stocks. In accord with my chart analysis, I’m in an all cash position once again with not much on the horizon for a couple weeks.

For this reason I may grab a few quick short-term short trades if they come to me. Otherwise, I’ll be waiting for setups to complete in the near future. The 200-day average area remains a major buy point in up-trending stock markets, where buying dips can work out very well over the course of the bull move.

Precious metals are holding around major support areas. The only the exception is platinum, which continues to drop. Gold and silver remains very near these historic buy levels.

Gold gained 0.29% for the week as it remains at the 200-day moving average major support area. As long as we can hold above $1,250, then gold should be fine. Moreover, this drop to the 200-day average will have been our first best chance to buy the dip, since this new uptrend began earlier in this spring.

Silver was pretty well flat gaining just 0.35% last week. Silver is holding above the 200-day average much better than gold - and looks ready to turn back higher anytime now. I’d look at the $17.70 as a buy level with $19 the first major resistance stop.

Platinum fell 2.40%, but should soon turn up if gold and silver do. Platinum has to regain the $960 level before I’d consider it a buy.  We are likely to see small “V” or “U” pattern setup with $960 to begin the buy level.

Palladium dropped 2.86% this past week, but is now looking to turn back up. Last Thursday and Friday saw a 2-day bottom bar combination that should turn the price back up now. It’s nice to see palladium move back up last Friday to close above the 100-day moving average.

Chart analysis suggests metals should turn back up shortly, while stocks in general still need a little more time to set up new base levels and buy points.

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