Gold Medal Action

A good week for markets as they consolidate where they should and they’re just catching their breath before the next burst higher. This is a bull market so there is really only one way to play it and that is to be long.  Dip buying has been paying off well, as well as momentum buying.

Just keeping things as simple as possible and focusing on leading stocks is working, so I’ll stick with it until it stops.

The precious metals are also consolidating very nicely here at key chart areas and will soon enough resume their moves higher so let’s take a look at them and see what’s what.

Gold closed the week out up 0.54% and is looking great here.

I was thinking we could see a pullback below the 200 day average back to $1,280 or so but now gold has formed a nice little bull flag just above the 200 day average, which is quite bullish.  A breakout above $1,330 or so is a buy area and the next resistance level where we can expect some consolidation is $1,360.  Above that we have $1,420 where we can expect more than just a few days of rest.

For now this bull flag should break higher within 3 or 4 days.

Super action from gold since putting in its double bottom low on the last trading day of 2013.

Silver rose 1.63% last week and also looks great here as its built a beautiful little bull flag which should also should last another 3 days but 4 days at the most or we risk falling  back to $20.50. Silver is acting very well with the next resistance levels above at $23, $24, then a large move to $28.

I’m looking for these moves to take some time.  If we can tap $28 by May I’d be happy -- and then we could see months of solid consolidation before we begin to move up again.

The slower the better as I’ve outlined many times here over the past months.

Platinum rose 0.09% for the week and is set up for a nice move here anytime to the $1,480 level.

This nice little consolidation just under the 200 day average is great and very constructive. After the $1,480 resistance level we have $1,500.

The charts are so nice in the precious metals and are working to a tee in terms of how they should using technical analysis.   I love it!

Some people give me grief over using technical analysis in the metals rather than fundamental analysis,  but if you read me weekly you know it works.

I am not being cocky and readily admit my errors, and there are many, but I’ve been quite spot on with the precious metals for longer than I care to remember.

That said out loud, I’m sure I’ll be wrong for a couple weeks now.

Palladium rose 0.52% for the week and is setting up for its run to $765 here now any-day. A great bull flag here above the moving average cluster and just below some major resistance at $745.  This nice consolidation is just what palladium needs to push past $745 and that breakout will take it to $765.

All in all the precious metals are behaving very nicely, predictably and just plain acting how they should coming off major lows and in the early stages of a major run, but that run won’t come for a couple or few years from now.

I’ve been getting a lot of questions about trading the miners -- and my thoughts remain the same.

Miners are coming off major lows and I am pointing out ones who look best to members …but I am not trading them yet.

For now, these miners coming off historic lows should be bought with a long-term timeframe in mind.  We will come to a time when these are the momentum stocks who lead the market but that is not for a couple years or more from now.  By that time these miners will be hundreds of percent above where they reside now -- and those will be great gains for those who can hold from these levels…but at that time we will see these stocks really accelerate higher and make fast money for us.

For now, the fast money is not in the miners rather, the leading stocks and some healthcare and biotech stocks are where the action is.

There is almost always a place to make the fast money and it’s my job to identify where that is.

Thank you very much for reading. Enjoy your weekend and the week ahead.

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