-- Posted Sunday, 30 June 2013 | | Disqus
By Warren Bevan
Another week of weakness for the precious metals which is slowly but surely causing perma-bulls to lose heart.
I had a thought this week that I shared with subscribers regarding the metals.
This game that is the markets is played to take as much money from the masses as possible.
It often works that the public does the exact wrong thing at the wrong time, almost every time.
They buy at tops, and sell at bottoms
Many hold physical metals and this takes a bit more than the click of a mouse to buy or sell. At least a trip to the nearest coin dealer.
With this in mind it makes much more sense to hit gold a few times hard to get their attention. Then once they are watching it would be best to get a slower grind lower going on with almost daily losses. It won’t take too much longer for the bulls to begin to give up and sell metal.
I think gold has about $200 left on the downside.
Do you think more metal would come to market if we had two $100 down days or if we had 20 $10 days in a row lower?
I think the second scenario would draw out more metal.
This of course is just a pondering on my part but this is a game and they are trying to flush out as much metals as possible here and I do think we will see a flood of metal to market near lows, as I’ve talked about here for a while now.
Only time will tell but I’m not seeing any signs of a solid bottom in yet.
As for the markets they weren’t great this past week and I really did hardly anything other than a few very short trades, some even only 10 minutes long.
This is a market to remain in cash except the odd quick trade and those only should be done by those who can.
During these times I talk to subscribers about the beauty and need to remain in cash. I guarantee they will be happier entering the next good cycle with 100% of their capital intact rather than having had lots of action, but many small losses.
People always want action and excitement and traders are included in that but the fact is that to win at this game there are times to know when to sit and there are times to go big.
We’re still in a time to sit but there were signs of life Friday.
Tops and bottoms aren’t often born in an instant and there are always buy points along the way up.
If I can keep subscribers and I out of the market when it’s bad, and in when it’s good it doesn’t take long before we’ve got much more money than we could ever know what to do with.
We should be getting some good buys in the next week or two but I won’t rush things.
Let’s take a quick look at the precious metals chart this week.
Gold fell 4.95% this past week as it continues its slide.
I would have preferred see more consolidation before we fell but the little triangle I alerted subscribers to broke and down we went, hard.
We can bounce back here to the $1,275 area and that would surely see the bulls declare a low.
I just do not see a low as being put in yet. I think this market needs to cleanse some more.
The scenario I mentioned earlier would be ideal. If we rise a bit and bring some buyers out, then drop again and again, all but the most hardened gold bulls would be exiting this market.
It looks like we will just consolidate recent losses in this quiet and shortened holiday week ahead but if we setup for lower prices again, as we did this past week, subscribers will be informed first.
Silver fell 2.47% for the week and remains below the important $20 level.
Had silver regained $20 in a few days after it’s breach, it would have been good, but it didn’t.
It looks like we’re on our way to $15 here at some point but we can test the now resistance level of $20 again first and that would hearten the bulls as well.
Platinum dropped 2.61% this past week.
Last weekend I said the low did look to be in here but warned that if gold fell, platinum was also likely to drop in unison. That is what happened but a marked difference can be seen.
Platinum snapped back after breaking down and closed back above the $1,325 support area. This is stronger action here and tells me a low is likely in, but again, I have to warn that if gold drops further then platinum will most likely also.
With possibilities for moves either way here or just a consolidation, I prefer to avoid it.
Palladium fell 3.47% this past week.
Very much the same action and sentiments can be echoed here for palladium as for platinum. It looks ok, but can swing both ways easily for the time being.
Below $650 is bad, above $650 is good.
If your up here in Canada, happy Canada Day and if you’re south in the states enjoy your Independence Day later on in the week.
It’s a nice quiet week with the market closed Thursday and all but closed Wednesday and Friday.
Enjoy your time off. That’s what we work so hard for.
Warren
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-- Posted Sunday, 30 June 2013 | Digg This Article
| Source: GoldSeek.com
