Gold and silver never gained any momentum today and in what looks like will be a flat week of trading with the U.S. Thanksgiving holiday; I wouldn’t look to making any major trades this week. Historically I have seen the general stock market get stronger leading up to holidays so I would expect the same between now and Thursday.
There is always the chance of a move from overseas traders but if you see it you might want to play the opposite of that move next week when U.S. traders get back from vacation.
Today we saw the miner’s gap down and really couldn’t muster anything until the end of the day. Small scalps could have been made in both directions but gold kind of whipsawed traders today as the miners did too. GDXJ is another gold mining ETF that I am adding to the list of one’s I’ll be talking about. It presently has a score of -65. I would like all these miners to give us a green weekly arrow to possibly think of a swing trade. So far they are just inching up. I am not ready to give an all in for miners just yet. I view these ETFs as trades only. The potential, as you can see from the following chart from Incrementum, is huge, but if I am right about gold breaking $1,000 an ounce, then the miners will be taken down one last time as well. I’ll be writing more about miners in future articles.
DGAZ gapped up past the 2.90 level I mentioned yesterday and was good for a scalp. UGAZ, the opposite of DGAZ took it on the chin but is definitely on the radar again. Perhaps a long if it goes past today’s high of $14.81.
USO still hovering under $29 on a closing basis after a couple day move higher and still keeping an eye on it. A move past $29.19 and it may finally become a long swing play.
Doug 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
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