Silver and gold have been moving higher the past few days as the broad market starts to show signs of exhaustion and becoming unstable with large intraday swings. If you take a look at the SPY or DIA intraday charts you will see the heavy sell off into the close which is a bearish sign. That says to me that smart money is getting out early as they expect prices to drop very soon.
Its important to note that when we get tops in the broad market it’s generally are slower to roll over and also creates a lot of this whipsaw action in prices which we saw today. I think we will see a healthy pullback starting any day. If this happens gold and silver should move higher and with any luck we will have a buy signal for them.
Oil move a little higher today but nothing to write home about.
Many of you have asked about the TZA trade. I did not post that trade properly and most of you did not enter into the position. I know many of you who did trade it made some good money on Monday and those still holding the trade are at break even or have a small profit as of the close today.
I will be introducing some new trading signals for the broad market. Any index fund can be traded like SPY, DIA, IWM, QQQQ, or you can trade the leveraged funds like QID, DXD, SDS, TZA, TNA, FAS, FAZ and many others. These new trading signals require buying at the close as well but most of the time we will not wait for the MACD or trend line breakouts. These are overbought and over sold market condition trades. They can vary in length from 1 day to 6 weeks. Similar to the move the broad market just had from the market low/bottom in March till now.
Once I have all the information available I will post it in the members area of the website for your to understand it better.
METALS: June gold futures closed up $7.30 at $890.00 today. Prices closed nearer the session high today on short covering and amid a weaker U.S. dollar. The gold bears still have the slight overall near-term technical advantage. Prices are still in a two-month-old downtrend on the daily bar chart.
May silver futures closed up 21.0 cents at $12.27 an ounce today. Prices closed near the session high today on short covering in a bear market. A seven-week-old downtrend is still in place on the daily bar chart. Bears still have the overall near-term technical advantage.