Gold and Silver Current Thoughts 2-17-2015

From the Trading Desk

The US market has returned from the long Presidents’ Day weekend to find all four precious metals breaking down.  Seemingly friendly news for the precious metals out of Europe was not enough to combat technical selling and developments in China.  In Brussels, the Greek Finance Minister refused to request an extension of his country’s existing bailout program.  This broke down a potential agreement on debt restructuring between Greece and its creditors.  Geopolitical concerns were also at the fore in the Crimea region with the cease fire between Ukraine and Russia on shaky ground after reports of renewed exchanges of fire.  Neither of these factors could attract safe haven bids for gold and the precious complex though.

Gold instead tumbled to a six week low on concerns that Chinese demand will fall for the upcoming Lunar New Year holiday.  Volume on the Shanghai Gold Exchange dropped today to the lowest in a year and the Chinese market will be closed for five sessions starting Wednesday.  Gold broke below its 100 day moving average for the first time since early January and the next critical area to watch for is $1,180.  Silver followed gold’s trajectory lower and closed below its own 100 day moving average for the first time in about a month as well.

Was a crazy day for some of what I follow. So much so that I did a morning report only to find the market somewhat trend for the rest of the day. All except for oil related plays at least because of a move by the Obama administration to put boots on the ground in Kuwait.

As mentioned in the morning report, $1,200 for gold and $16 are the resistance points for gold and silver. Look to see if the selling continues tomorrow and still look to go long JDST or DSLV if it does.

TNA stayed above 84 and I’d go long TZA on a move above 11.20.

RUSS swung higher, then lower and finished positive, but below the $12 mark. If you are not stopped out of it, I would continue to look for a move above $12.

DWTI was at 92 pre-market, opened at 100, moved up to 105 then fell to lower lows down to 88 before closing at 93.40. It’s down to 92.50 after hours. UWTI ended up the day 4.04% closing at 3.86.  It would have been a buy aty 3.59, a break of the open price which was the high of the day until the break.

UGAZ opened about where it closed yesterday, fell a little, bounced back and closed about the same. Not much action to be played there. DGAZ you might have squeezed something out of it, but was not the best play today.

Not much change in the data below. Be smart about your trades and keep stops. For precious metals, I look for lower lows. If you don’t believe me, call me up and ask me what I think the price will do and I’ll tell you that.

The mining package that we will be offering has been waiting for a release that I feel would coincide with my overall view of gold and silver prices reaching the targets I think they can fall too. Many so called experts last year in July thought the miners would take off and next thing you know they broke to lower lows. Some called this latest run up the final fall for the miners. It obviously hasn’t been and I know that’s frustrating for many who are long or have been long for some time. There is a reason why I have been patient with its release. There is also a reason why I chose the stocks I did and I’m excited about their potential. The mining package release date will be announced soon. There will be an email that goes out to all that have signed up. If you haven’t signed up yet, please click on the link at the bottom. Thank you.

Gold and Silver Stock Mining Package

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