-- Published: Monday, 27 October 2014 | Print | Disqus
By Warren Bevan
Markets have been very strong and have a solid low now in place but they do need a little rest since they have come so far so fast and are now overbought.
I’ve already identified the leading sectors for member and the stocks within which do best are also well known to us already.
It is almost time to get heavy into stocks once again for the run into the end of the year.
As for the metals, they are broken and can’t even base after a strong move lower.
The metals are just about ready to head south once again though so let’s take a look at how they failed this past week.
Gold ended the week down a solid 5.71% after giving the perma-bulls a glimmer of hope.
Gold was moving pretty well mid-week and looked like it may take over from silver as the leader between the two.
The problem was, silver was not confirming the strength and was actually still quite weak.
Sure enough, gold fell hard the next day and has now failed and is looking for lower right away.
I give members my thoughts on gold and silver daily and those can change in a heartbeat so they have an up on you who only read my weekend letters.
Gold is moving to $1,220 now and has to hold there but it is not looking good.
I’d have preferred to see gold and silver chop around for a couple months but that is not up to me and that scenario looks now to be out the window.
Silver lost just 0.51% for the week and remains in control in terms of dictating where gold and silver move.
$15 is the major support level I’ve been looking for and that could be seen sooner rather than later now.
2014 has been a very tough year for perma-bulls and it is not over yet.
Platinum lost only 0.92% this past week and is just basing for now.
Platinum is looking to move lower as well after not being able to best the 21 day moving average.
On the way up, this average acts as support while on the way down it poses resistance.
Platinum follows gold and silver so look to those for cues on timing.
$1,200 remains a crucial support level and if that breaks there really isn’t much support until all the way back to $900, dating back to 2004 when the metals bull market really began to accelerate.
Palladium was the lone winner and gained 3.43% for the week and looks good after putting in a solid double bottom.
That said, and as always, when gold and silver accelerate lower with strength there will be nothing able to hold palladium up.
Markets and leading stocks are really shaping up for a nice run to make us our stake for the year over the next couple months but metals are not.
There is no point in really focusing on something that isn’t making any money so while I do look at the metals and talk about them daily with members, I haven’t traded them in quite sometime and can’t see why I would anytime soon.
Finding leading sectors and stocks within has got me to where I am so that is what I continue to do.
If you’re too focused on the metals and struggling, maybe it’s time to give me and my strategy a try.
Thank you very much for reading and you can find out more about what I do for members as we focus on leading stocks for the most part at http://wizzentrading.com
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-- Published: Monday, 27 October 2014 | E-Mail | Print | Source: GoldSeek.com