Precious Metals Update

If you are a sub and have been paying attention then you ought to be short both gold and silver right now. In the past week I have repeatedly been pointing at both charts suggesting that PMs were coiling up ahead of a big move. Today may have been the beginning of just that, let’s observe:

Quite frankly that sideways triangle on gold was pretty tough to miss. We had been bouncing around the tip driving everyone crazy – and that’s usually when I start to pay attention. The lower trigger line was breached today and gold has descended to its lower 25-day Bollinger.

Now, it’s still early in the game and thus be prepared for the possibility of a last kiss goodbye reversal – or even worse a push back to the upper trigger line, which would qualify this as a fake breach. It’s all part of the price of admission – always be mentally prepared and don’t let your emotions affect your trading.

Yes, I know easier said than done – it’s an ongoing project. When you become a trader you automatically join the A.A. – the Affectus Anonymous – you can never really cure the disease and we don’t have a twelve step program. Heck, maybe I should come up with one? 😉

On silver we had a slightly different pattern but we expected the upper resistance line to hold up. I was suggesting a short position at a breach of that 25-day SMA, which happened today. If you’ve been hanging around here for a while you may also have followed the 25-hour SMA on the left panel which was suggesting a move was in the making.

Here’s a little freebie from the equities side – AAPL is once again testing its 25-day SMA and I’m short here with a stop a few handles above. After a stop out I would not be long unless it manages to climb above the coveted 500 mark.
[amprotect=nonmember] More charts and non-biased commentary below for anyone donning a secret decoder ring. If you are interested in becoming a Gold member then don’t waste time and sign up here. And if you are a Zero or Geronimo subscriber it includes access to all Gold posts, so you actually get double the bang for your buck.
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Two more stock symbols – here’s WYNN which dropped back to its 25-day SMA. I’m liking the two hourly SMAs here and would be long above both or short if WYNN drops below both of them. Hope this makes sense, basically I’m using an hourly inflection point in combination with potential support on the daily. FWIW – I would not take this setup without the hourly configuration as the 25-day SMA has not been firmly observed recently.

Similar idea on MA actually – I would however wait for a touch of the 100-hour. In this case only the 100-hour is my line in the sand and fortunately we have a bit more credibility for potential daily support courtesy of the 25-day SMA.

USD/JPY – the daily setup has unfortunately already taken off but the hourly panel is another way to play this.

AUD/JPY long with a stop below the daily SMA IF (and only IF) it manages to crawl above its 100-hour SMA. Short if she drops below the 25-day SMA.

Bonds – the 10-year is looking interesting as it keeps bouncing off its 100-hour SMA – this also has produced a nice diagonal on the daily panel. So I would want to be long here once we clear the 25-day SMA. If it drops below the diagonal I’m back in a short.

Cheers,