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

Morning folks-

quick note here for today- we continue with more chop, no attempt to go into and fill the gap price wise, and no sort of move lower either.

market continues to keep silver and gold in a holding pattern for now.

At this stage, those are the two options. I;ll also repeat myself, the longer this chop and bouncing around occurs, when its time to finally move, whether it is up or down, the move will be fast and furious.

HA!

yea in a sense yes. the longer the base, the bigger the move. At one point, it will break, this holding pattern, if you like, of where we are going.

at this point, patience is very key.

Yup, with all due respect, and unlike many who use the phrase, I mean it; do you actually know what you are talking about, or do you just know a few buzz words? I ask because gold and silver have largely remained stable since their initial drops. None of this bounce, chop, holding pattern, or gap talk seems to reflect the reality on the ground.

Also, do people have this poor of memories? This time last year, everyone was in a panic because silver dropped to $27-ish. Twelve months ago. Today, it trades at $24/oz. So our net difference in terms of the last calender year is $3/oz. Might I add that early summer is traditionally the lowest point for gold/silver in recent times.

I will bet anyone one ounce of fine Canadian silver, against one ounce of your countries silver bullion, that silver will trade for at least $32/oz by Halloween. Any takers, email me.

Anj

My friend, I am disappointed that you fail to see and understand what I describe every day.

Perhaps I can illustrate a key point that you are missing and that I keep emphasizing.

the GAP. Why is the GAP so important? Why do I keep referring to it constantly? On 4/12/13 we commenced the start of this heavy selling. Notice the volume, was big also on this date. The next day also brought more selling, on even more increased volume.

What does this gap represent? Well,This is a common price occurrence in various assets, whether commodity, equity, bond or currency. They can occur either in an upward or downward movement. Think of a gap as a sort of "rush to the exits in the case of gold here. Many times a gap up, represents the flood of buyers, pushing the price right at the open, higher. But this is key with the gap,, the VOLUME represents the amount of selling and buying. In our case, gold has a ton of heavy volume on the sell side.

Those two days on the gap, memory serves me right our volume was 8 times its normal average volume on GLD.

THEREFORE, if GLD and also gold (because if you were trading futures contracts you would also have this gap at these dates) if it is to go higher, it MUST close this gap down. There must be enough buyers to push gold into this gap, fill it, close it, and then stabilize ABOVE the gap. Along with this kind of move, we want to see very large heavy volume to CONFIRM that the authority is with the buyers. We want to see accumulation. That is why I keep referring to the gap and reminding everyone at home that this gap MUST BE CLOSED.

What you are seeing right now after the gap down is very typical and normal after a major move of importance. The sellers removed their positions after making major gains for the YEAR on just two days. As an example, when I sold silver short, I covered my position on the gap down on the first day, as many traders do, which allows the price to rise, that is normal. That is the retracement I talked about it. Again, this is very very very typical classical move.

So, again, nothing has changed. gold and silver remain in very large downtrends. The buyers, if they are going to show resolve at this point, will have to step up to the plate and buy. Conversely, the sellers, if they are going to step into the market and drive it lower, they too must show up and drive it down.

SO what you saw was the gap down, which resulted because enough force occurred where the sellers took over and there was a rush to the exit, a retracement in price as the sellers "covered", that is they took their profits from making money as the PMs dropped and stuck it in the bank or in another part of the market and buyers took advantage of that. But notice, GLD stopped to the PENNY on its only attempt to fill the gap and then stalled. It is now just chopping and bouncing around in a narrow range, as now the market decides what the next move is.

This range, could go on for weeks, months before we know the direction of the PMs.

Look, I am going to give you an insight right now on what my play book is on gold.

a- I am a buyer of gold IF it goes into the gap, fills it and stabilizes with good accumulation. After that, I am looking for a break of a trendline in price which will be my confirmation to take a line and buy it. I dont see that yet... and my first clue to know whats going on is, filling that gap, it is so so so important and a MAJOR clue to what happens next.

b- IF this gap isn't filled, and the price starts each day, making successive lower highs and lower lows, that's an early clue that gold is slowly but surely getting ready to commence another leg lower. What will confirm this? By the price action, and that will be IF gold makes another yearly low, that is my trigger to sell it short, and there should be sufficient volume to go along with it.

c- so long as the price continues to chop and bounce around,,, I do nothing,, because nothing is happening. this usually signals the market has not made its mind up what it wants to do next, so its a wait and see approach.


Thats why I say, patience is key.. and giving it time. This type of pattern and price action in gold and silver I have seen played out THOUSANDS of times in other trades I have done. Trends play out over a period of time and I dont see that the downtrend is over yet.

I hope that helps explain why I keep repeating certain things over and over. They are our major clues. and I hope by giving you my playbook and plan you can see better what to expect.

BTW, if made some run on sentences or typos or wrong snytax, please excuse me as its been a long day and its late and I am gong to crash lol If I lost anyone I apologize in advance Iw ill be back to answer your questions.

Guys-

Ok, so, as some of have you seen, we have a break this morning on a gap lower, albeit, a small one.

Thus far in GLD and SLV, we have today lower highs and lower lows over yesterday. Keep on watching if this continues today and then if it continues, this same type price action for tomorrow. That would be a clue leaning towards upcoming lower prices and wanting to resume a new leg lower.

The other option is the the range begins to tighten up, prices narrow,, but on the lower end.

As always, be patient and give it time. Should anything change I;ll be back,

I'll buy below 1425. So sell, sell we are almost there.

Norm

As we roll here this AM, the Mexican stand off continues! Once again a small gap down on GLD and SLV flat.

You know the drill, be patient and give it time. At this stage, no one is taking a side on the metals and nor should anyone else. As we say, let the funds and institutionals do the heavy lifting first before putting any sort of money to work.