Technical analyst Clive Maund assesses the precious metals landscape after Friday's broad market selloff, and offers strategies for precious metals investors.
After what happened on Friday, many Precious Metals sector investors are naturally concerned about the effect of further heavy losses in the broad market on the sector. Let's now review Friday's action, starting with the broad market itself, before moving on to consider the likely impact on the PM sector.
After almost two months of quietly drifting sideways, the ground opened up beneath the broad market on Friday, as we can see on the 6-month chart for the SP 500 index below. It gapped down at the open and plunged by 2.45%, heading ever lower as the day unfolded, there was not even the customary bounce in the last hour of trading. Continue reading "Precious Metals Sector Downside Target on Friday's Market Rout"→
Come on in my trading office and let me walk you through our latest option setup in the gold mining ETF. We use Elliott Wave and Fibonacci analysis to pinpoint the exact support and resistance levels for this trade setup.
Stock indexes are melting higher, which usually suggests unsustainable short covering. We took profits on long trades and moved into the short side. Hopefully, my head won't be hanging on a wall because of it, but the market internals and a correlated asset class confirms the move.
Precious metals expert Michael Ballanger says that owning silver versus owning gold is a high-probability trade that could be the 2016 Trade of the Year.
This week's Gong Show in the global financial markets reminds me of the early 1980s before the advent of the Internet or online trading or blogs and especially before 30-something financial "advisors" were allowed to go on the national (and international) airwaves or Internet websites and babble on for what seem like days how "The Fed has our back!" as an excuse for buying stocks at 23 times forward earnings.
Back then, at 4:15 every Friday night, there would be a line-up of brokers and analysts (even the janitor) next to the old teletype machine (I am imagining more than a few raised eyebrows among the kids out there as they quickly Google search "teletype machine" on their Smartphones while sipping a $10 cup of fancy-ass coffee) in expectation of the all-important "Money Supply" numbers that everyone supposed was going to give them a hint as to when interest rates would start to decline from 16%-plus nosebleed levels of the early 1980s. Continue reading "The Gold-to-Silver Ratio: A Truly Generational Opportunity"→
Who will win the battle between the bulls and the bears that is raging in the equity markets?
This morning when woke up I did what I usually do - check the pre-market prices. I saw that all three indices were down over 1% for the day. It would appear that 1-2% swings are rapidly becoming the norm in the month of December.
I will be watching the RSI indicator closely today. If you are not familiar with this indicator we have a short video that explains how it works and how you can best benefit from it. I will also show you in today's video why I'm watching this indicator and where the trigger point will come in on the major indices. Continue reading "The Battle Continues - Who Will Win?"→