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Gold & Silver Buy Side Remains Up-Near New Top
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December daily gold futures rallied out of $1,032.50 just six trading days ago and were posting, overnight near $1,090. As we write this on Thursday after the close, gold futures are pressuring higher in a wave five of five. The high was $1,095.20 and could settle back to $1,085 or lower in a normal profit-taking event. Remain cautious in your trading and investing. We think there is still room for a tardy correction in commodities and stocks. At this juncture, with so many fundamental long signals, we think any correction would be mild and gold could hold support at $1,085.
Daily gold on 11-4-09 closing shows large breakout.
Momentum is pointing up again in far right hand corner of weekly chart.
XAU shares remain tied to mainstream stocks but this can eventually change. Note the shares are not nearly as bullish as the cash gold prices yet remain in an up channel and can be considered remaining on the bull side.
Ever present weaker dollar recovered enough to find new support at 75.50.
We are expecting a mild markets’ move on technical signals at this date. Could it become more extreme? Yes, it could but it increasingly appears we get a mild correction followed by a new shares rally in precious metals and mainstream shares. We would be buyers on technical confirmation.
Financials crashed in fall, 2008 with Lehman. Recovery began with TARP in May, 2009: During November, 2009, we’re ending a dead cat bounce with mild toppy selling this month. Precious metals and their shares are still peaking on this November 5, 2009; for the shorter term. Beginning November 9-13, most all trends can reverse and moves to rallies. Between now and then some selling and corrections should appear. We are at a turning point in most markets.
Keep in mind, if you own paid for stuff it will most likely remain in your hands; not in somebody else’s. That includes gold and silver. Do not get tangled-up in daily noise. Keep studying the larger view and buy precious metals after each profit-taking correction. Headwinds are building into an economic hurricane. Take care of business right now.
My dire fall prediction might surprise us and arrive at any time. Selling is mild now. But next summer could be the large crash. In the coming middle, look for more buying.
Personally, I can see unbelievable opportunities to trade that we would never see again for many years. Turn these problems into opportunities. Those on the right side of the trade might get rich. Those on the other side are just victims. Stay Alert. –Traderrog
Roger Wiegand
Editor Trader Tracks Newsletter
The Jay & Rog Blog at webeatthestreet.com
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Roger Wiegand is Editor of Trader Tracks Newsletter for gold, silver and energy traders. Roger provides recommendations for short and longer term traditional stock shares, futures and commodities trading with specifics for individual trades. See webeatthestreet.com for more information.
Contact Claudio Bassi, at Trader Tracks New York City publishing offices for an introductory 30-day trial subscription for only US$49.00. This is half the monthly rate our subscribers pay. Call us at 718-457-1426 Monday through Friday, 9:00am to 4:30pm (EST). You can also e-mail Claudio at cbassi@miningstocks.com for more information.
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