Gold maintained some strength today before falling back a bit. Silver still holding its own, but a little weaker than gold. The miners were up most of the day and gave some back by close. GDX and NUGT were both up with JNUG ending with a small loss. Not much after hours action to speak of. Something should pop soon in my opinion. Gold has to keep moving higher and the miners need to follow suit. They tried today.
TNA did bounce as I thought it might. I think there was plenty of time to make a trade long today and take profit. A potential swing trade is developing as well. Seems to be a better risk vs. reward than the miners although the miners can bounce hard when they do take off. GDX you will note is still holding a score of – 100. I had said to wait a day and see what it might bring. We all know bounce will come and timing isn’t the easiest. If a trader kept a stop at $1,200 for gold, a play on the miners might be setting up for the active trader.
I will reiterate that no matter how strong a bounce we have in gold and silver, we are not off to the races yet.
From the Trading Desk
With the US out for Columbus Day and Canada observing Thanksgiving yesterday, the precious metals had a quiet start to the week. Gold had its thinnest volume day on the electronic exchange since the end of September with US banks and Canadian gold producers on the sidelines. Prior to today, the Dow Jones had three consecutive down days of losing nearly 700 points. It is below its 200 day moving average for the first time since February of this year. The exit from equities has translated to money entering precious metals. Gold held key support at $1,180 last week and is pressing higher as investors become increasingly wary of equity positions. Near term resistance is coming in at $1,241, a previous triple bottom from June. After consolidating on either side of $17 last week, silver has been trending higher with gold as well. A close above $17.50 would encourage fresh longs to enter the market.
10-14-2014 GLD CHART
10-14-2014 SLV CHART
10-14-2014 GDX CHART
Disclosure:
Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with capital you can’t afford to lose. This is neither a solicitation nor an offer to Purchase/Sell futures or options. No representation is being made that any account will or is likely to achieve gains or losses similar to those discussed in this outlook. The past track record of any trading system or methodology is not necessarily indicative of future results.
All trades, patterns, charts, systems, etc. discussed in this outlook and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author.
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About Doug EberhardtDoug Eberhardt is a 28 year financial services veteran and precious metals broker selling gold and silver at 1% over wholesale cost. Doug has written a book to help investors understand how gold and silver fit into a diversified portfolio, how to buy gold and silver, and what metals to buy. The book; “Buy Gold and Silver Safely” is available by clicking here Contact phone number for Buy Gold and Silver Safely is 888-604-6534
Disclosure:
Commodity Futures Trading Commission Futures and Options trading has large potential rewards, but also large potential risk. You must be aware of the risks and be willing to accept them in order to invest in the futures and options markets. Don’t trade with capital you can’t afford to lose. This is neither a solicitation nor an offer to Purchase/Sell futures or options. No representation is being made that any account will or is likely to achieve gains or losses similar to those discussed in this outlook. The past track record of any trading system or methodology is not necessarily indicative of future results.
All trades, patterns, charts, systems, etc. discussed in this outlook and the product materials are for illustrative purposes only and not to be construed as specific advisory recommendations. All ideas and material presented are entirely those of the author.