Occasionally, I get some grief about the 6-month cycle and how it doesn’t work. Granted, it isn’t perfect…some cycles run short while others extend, but for the most part, it’s a useful timing tool. And if measured correctly, can provide a profitable trading strategy. So what went wrong with this most recent cycle? Frankly, […]
Continue Reading →The persistent decline is wearing on investors and one-by-one they have lost hope and are beginning to capitulate. We could see more volatility, but there is a decent chance prices bottom within the next 48-hours. The final decline into the prior 6-month low lasted 10-trading days. We are nine days into the current downturn, […]
Continue Reading →I’ve been monitoring subtle changes within the silver market that could mark the beginning of an accelerated uptrend. Silver held the May 1st low $16.07 when gold broke down below $1300. Prices just closed above the May $16.86 high. The Gold/Silver ratio is now below the 200-day MA. If I’m interpreting the charts correctly, […]
Continue Reading →The bottoming process has been grueling, and I see some hesitation from members. There have been a few scares along the way, but we are on track for a cycle low. In bull markets, you want to buy dips below the 200-day MA. The current decline below the 200-day is progressing beautifully. Prices bottomed […]
Continue Reading →Gold continues to weaken, and a breakdown below $1310 is becoming likely (currently at $1314). Silver dropped to fresh lows (now $16.36). If gold breaks sharply below $1310 and then $1303 I’ll look for a bottom around Friday’s employment report.
Continue Reading →Prices have held up, and I took initial positions in JNUG and USLV. Bought JNUG at $14.77 with an initial stop at $13.85. Bought USLV at $10.42 with an initial stop at $9.85. Prices didn’t drop deep enough to trigger an official buy signal, so the color codes haven’t changed.
Continue Reading →Overnight gold declined to $1,307.40, and a breakdown below $1300 was nigh. Unfortunately, prices reversed around 2:00 AM and closed the day at $1,317.80. The odds for a bottom forming around the time of the Fed meeting are fading; it’s time to build alternative scenarios. The key levels going forward are $1310 and $1343 […]
Continue Reading →The economic data released at 8:30 drove gold down to $1319. Prices quickly recovered and are trading around $1334 as I write. The dollar rallied on the news, but prices may be starting to rollover. -JNUG- I entered 25% of my previous stake at $14.10.
Continue Reading →Yesterday’s sharp selloff may have been a fleeting event, we should know later today. Perhaps it was an overly aggressive gap fill, or maybe it was manufactured by a large institution. Whatever the case, as long as metals and miners remain above yesterday’s selloff lows, I’ll look to our early February targets. However, closing […]
Continue Reading →The dollar appears to be breaking lower and I’m going to add the final tranches of USLV and JNUG. Both miners (GDX/GDXJ) filled their gaps, and prices are trying to reverse. Final USLV at $11.45 Final JNUG at $17.90 I’ll be out of the office until 5:00 PM. The SCO trade will likely get […]
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