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

@Yup

I agree. I'm glad The Gold Forecast had me buy at $1255 two weeks ago.

Although you and Wagner have different approaches, you are both excellent in your respective styles (e.g., Elliot & Trend).

I hope everyone has a great weekend after the last two weeks!

As many of you know, I really dont follow any certain sort of news. I trade mostly in silence, reading the tape, following set ups, monitoring various asset classes, monitoring assets making 52 highs and those making 52 lows.

I dont really follow any news during the day except others traders chatter from through out the day.

So when gold starting running higher in the early afternoon and stocks kind of started to flake again I figured it was once again the typical putrid market action.

In some ways I was not surprised by golds strength, we have been saying for 2 weeks now its been acting strong.

However, I continued reading the tape, observing a long list of stocks that had reported this week and yesterday that reported really good numbers and continue to trend higher in this horrid tape. To me that is all that matters, what is price doing, going, where is the money flowing to or out of.

AFter a while my stream started showing these items about the FBI and the email debacle. Which, I mean, to me, personally, means absolutely nothing. I am not in the business of politics, I am in the business to make money and manage risk.

So..

Point 1- As usual, price happens FIRST, then news follows. THis is a perfect example. IF you have been paying attention, you would already known that gold has been acting pretty well, with silver following. If one was amazed by the spike today in gold, well you are pretty behind the curve because gold has been grinding away for 2 weeks roughly. So again, PRICE FIRST, news SECOND. Dont ever forget that.

Perhaps the market already knew about this weeks ago? I dunno. I do believe tho, since markets look into the future (because there are many market forces at work every day and the market is dynamic, ever changing) perhaps some parts of the markets were aware of this stirring underneath the surface.

Point 2- News events can be faded. This is not the point now to jump and run and roll yourself into gold. Remember, the markets take their sweet time and nothing does up or down in a straight line. Overhead supply still lurks. expect some more and continued back and forth in the PMs. That is NOT too say that this price action isn't positive.

However, usually on these pops, people tend to act late, so dont get caught buying around these levels. There will be other levels to enter.


It will be interesting to see if as we wrap up elections, whoever it is that becomes president, if we get a similar ramp up in gold. I remember when Obama won, I was in the process of adding the final tranche in what was a long term trend following position for gold, I added my final line in the 770s in november. Now, I am NOT saying that because of Obama I took gold nor am I saying that whoever takes over soon will cause gold to ramp higher.

I am just saying, patterns, cycles repeat. Seeing that gold and silver are once again in up trends and with a new president coming, conditions seem ripe and accommodating for that same kind of continued push higher by the PMs.

The final thought is this- dont feel the train took off. There will be many areas to enter gold and silver. I repeat, I bought in the 400s, 500s, and 770s and just sat in the very long gold uptrend. Look where gold ended up... almost 2K. The real fireworks should really start IF/WHEN we get 2,000 gold. Above 2,000 there is ZERO OVERHEAD SUPPLY and that will let gold run, there will be no sellers, we will be in uncharted territory which is great.

But we are getting ahead here. for now , continue to pay attention to gold, silver as they build on their bases/ranges.

@#ZACK..yes, I have..the "Spin Drs" are using it to sell either monthly subscriptions to their bullion newsletters, and/or, selling gold coins...yes, it is true, some laws either have changed, or, will change, but, a fact-checker shows minimal global impact. It's not like all of the sudden, there be a massive supply shortage..not even a small dent.
As YUP says, just watch the tape. Look for newer higher closings each day. Most of the people who exited the last 100 days are gone. It's hopefully becoming a buyers market again. Only time will tell.

I am going to see if I can do a chart or two before the evening is out. but one thought I want to leave for next week, here are your numbers to see if we see more upside in gold and silver.

Gold- breaking 1284.50 pushes higher into that gap

Silver- breaking 17.93 pushes higher into that gap

the gap we are referring to is the gap down from 10/4.

I am hoping to add a chart to point out a few things before the evening is out.

Yea, I figured it was some sort of gimmick. Everyone wants to get into your pocket.

So I refer you all to point 2 from my 10-29 post. Here is the news fade reaction I talked about. Expect more of this type price action in gold, silver.

Remember, we are concentrated on seeing if these ranges continue to form and break higher, little by little. Seeing that we had two weeks of this type of price action, I do think its possible we march higher in this form, with again, lots of back and forth, which is not a bad thing.

ever hear the old saying "what matters is how they close"? Take notice how just about all gold and silver mining stocks closed at their high of day today.

This despite the fact that gold and silver really didnt really move up much.