What Happens To Gold And Silver Next? Look Out Below?

@Jim

I am gonnan take a guess here but I would think that those kind of folks are unloading into every rally in silver and gold.

I know if I was sitting on gold and silver right now I and had an agenda I would be doing two things-

1- Selling more gold and silver into the rallies quietly, little a time

2- I would be telling everyone "oh prices are getting stable".

3- I would say, "I am in this for the long term. So this actually is a good spot to be buying".

doesn't Kitco actually sell coins as well? I see sometimes their work around my parts.

Well before I answer your question Hawkie, I need to clarify and correct you on a few things

1- I am a trend following trader, I dont care if an asset goes up or down.

2- There is no such thing as a bear or bull, it is senseless and useless gibberish put out by the media. I would challenge ANYONE here to see when I have ever used that term

3- I dont care about being right or wrong. I only care to be on the right side of the trade because thats how I get paid. I get paid by following a trend, up or down and then getting off when its done going down or up and then tells me to book profit.

4- I trade a wide range of assets and I am not trading silver or gold, I have booked major profits months ago shorting silver and gold, I have no interest in trading silver and gold right now. Rather I have been selling the grain complex short, I been buying the indices, I have been buying stocks as of late.

A big pet peeve I have is when individuals cannot comprehend that someone could make money on following trends in either direction, up or down. But I blame the financial media for that.

Thats why I feel I offer the best view on the PM markets, I am not looking for anything but a trend. I dont have a bias and there is no reason for me to want something to go up or down, I simply call the market as I see it.

Now to answer your question-

We are still in a overall primary downtrend with nothing but retracements for now. Does that mean that we sell short? No it doesn't, I have been short silver or gold for two months now and have moved on to other set ups.

I been waiting to sell short or waiting to buy, at this snap shot this is my game plan per my own rules, doing what has worked for me to be a PROFITABLE trader. Remember guys, I dont give a flying leap about gold or silver. I only care what trend does it give me because I only care about making MONEY. Got it? good.

This is how I view gold and silver right now-

Question- where do I sell this short?

Answer- I go off of confirmation. What would get me to place money and give me the BEST probability would be selling silver and gold short when they are read to break the 52 low. Simple. So here is how I would in part profit if we get that sort of move

Sell short SLV @ 17.75
Sell short AGQ @ 15.01
Buy ZSL @ 116.26

Futures contracts also- wont go into detail because its clear most folks wouldn't touch that yet, and I dont blame them.

So now we know where I would be selling short silver. Thats per my rules, what system and what has made me $$$$. Until or if and when the market reaches those price points, I dont do nada but wait.

Now what gets me to be a buyer of silver? Well, first we need to march up and fill those gaps that I have talked tirelessly about.

Right now as it stands, here's my aress of confirmation to buy silver

SLV buy @ over 23.16
AGQ buy @ 25.99
sell short ZSL @ 71.42

Silver over 24.17 gets me interested and would be my buy point.

However, at this point, we have not see those price targets in EITHER direction, so I do NOTHING but wait. I am not interested in a narrow range as a trend/momentum trader. I am interested in the big major moves that make tons of money by sitting and waiting in them until the move is played out.

In the meantime, I do have an eye on Plat that is starting to interest me on the upside.

But for now, we are in no mans land with gold and silver. Sure, there are traders with short time frames who are swinging and scalping this intra-day range. But without a doubt, the overall picture and trend is down and hasnt been snapped.

I'll add to yup's last comments in support of momentum versus range trading:

(1) Small guys (like many of us) get killed in fees trying to swing back and forth in a range.
(2) Range traders get stuck on the wrong side when the range breaks.

For $4.99, I can buy or sell a trend and do pretty well.

Come on guys - I want cheaper silver not more expensive silver! I keep trying to find and backfill my bullion ATB's and like buying them a lot more at $115 than I did @ $160+

Personally I want to see silver continue up. I bought a bunch in the $18s and lowered my DCA to under $23 per oz. I don't have a lot of ready cash left for a big move lower as I have been dabbling in guns for the past couple years to go along with my silver buying. I would love to see $30 before Christmas so I can cash out of a couple hundred ozs and buy a couple more collectible firearms.

I understand that we are still in a downtrend according to yup and if we do go down around $15 I will be tempted to sell off some guns to purchase more silver.

I would agree with that Baseball as you seem to have a pretty solid and balanced/logical view of the the market trends....

Maybe you are just a numbers guy as baseball is all about the mathematical statistics eh, as one could argue the pm and markets in general are all based on same mathematical formulas and equations....

Homer run hitter are nice, but give me a base runner like Robinson or Henderson any day of the week and a team that knows how to move the guys around the bags one base at a time and if they have pitching I say that is a formula for a title team. All while getting inside the pitchers head the entire way as they steal bases....

I have no clue what that has to do with pmz or market in any way, just felt like saying it lol....

Lets look at the action for today-

We see both gold and silver have been up four in a row after having turned away from the gap they had entered into. Today they entered the gap once again.

Will this second attempt into the gap be the ticket to much higher prices? What areas do we need to penetrate to see higher prices? Lets turn to our proxies to see

GLD- we started today with a gap up. Once that happened, gold was solidly in the gap. Now gold needs to close the gap. Last time gold was here in the gap it came short of filling the gap and turned lower. So as it comes into the gap a second time, the first number we are looking at is 130.38. Getting into that and gold has finally filled and closed the gap. That could allow higher prices from there. So thats what you should be looking at going forward. watch how the price deals with closing the gap.

SLV- silver is pretty much in the same spot again. What is interesting with this move here is that silver has actually gone up into the gap after not even going into the gap last time. So here we see silver has filled the 6/20 gap and closed it. Pretty interesting.

Question is, does it hold here? OR does it turn back?

For those answers, we have to allow time and take everything in levels. If you want to see higher prices, its key that these levels hold and then we get churn and more chop and then watch the price move out higher.

As always, time is key, because it allows this move to play out. Time will tell us if the selling is over and prices are ready to move higher.

However, remember, gold and silver are still in downtrends. All that selling and distribution will turn into resistance price wise and will take time to digest. For that reason, I feel this is only a retracement in price and nothing more. Gold and silver will have to prove to me via price that they are leaving and out of their current downtrend.