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A bad week for markets as
Thursday and Friday saw heavy heavy selling and we
have now broken a very bearish pattern in the index charts which I�’ve talked about here for the past week or so.
We could have a ways to
go in this general correction but we are due for a bounce that should come
Monday.
Bounces in a downtrend
are general sharp and large.
Another tip-off to the
correction was the movement into large paying dividend stocks which we began
feeding into late in the week and I�’m looking
for more this weekend.So far the best one pays 23%
annually.
As for gold, it had a
nice week and continues to move away from its double bottom and should act as
a safe haven now.Miners are also doing well but
they will not hold up in the face of a major market correction so there is no
huge rush to moving into those yet.
Let�’s take a look at where we are in
the precious metals charts this weekend.
Gold had a nice week
ending up 0.86% but more importantly breaking some major resistance levels.
Gold broke its long
downtrend line late in the week on heavy volume which means this should work
and not be another failed breakout.
We have some resistance
at $1,280 but the base we are breaking out of is much more likely to see us
move to $1,300 before we see any rest of more than a few days.
Gold is leading silver
here as I�’ve mentioned I thought would happen
with silver not moving well at all yet but it should soon catch up to gold.
All in all, great stuff
in 2014 and just what I was hoping for.
Silver was lower by 2.68%
but does look good here.
With gold moving and
leading silver we should soon see it breakout.
Silver looks really nice
here with a solid base and we look to be very near a breakout of this large
downtrend line very soon.
We should breakout now
within three days.
Platinum fell 1.92% after
running into resistance at the $1,480 area.
Not great action at all
here.
Platinum broke out last
week but once it hit resistance if backed off on heavy volume and has now
fallen back below the breakout level on heavy volume again.
We could see a move back
to $1,400 here if we can�’t hold $1,420.
Just because something
breaks out doesn�’t mean it�’s
all system go.
The action can quickly
reverse and if large volume accompanies that then it�’s
time to check out of your positions first and ask question later.
There is no need to take
undue risks and if something is really going to work it will just work and
not make you second guess your trade.
Palladium also saw a
failed breakout on heavy volume and ended the week 1.93% lower.
If we can�’t
hold here at $735 then the moving average cluster will provide strong support
at $725.
Under that and $710 is
the next support level.
With markets now in a
confirmed correction mode there is no real telling where metals will go but
the fact that traders don�’t have profits in
gold on the long side does give me a strong view that gold will not be sold
here.
Back in 2007 there were
large profits in gold and when the markets broke, everything was sold and
gold was no exception.
This time around we
should see gold act as a safe haven for money and rise perhaps a bit quicker
than I�’d been looking or hoping for.
We are definitely in for
some fun in the market and stocks now as we should see up to a 10% correction
in the S&P 500 and other markets.
Some of the fastest and
largest cash I�’ve made has been shorting
stocks and also taking advantage of the large but short-lived dead-cat
bounces we see in major corrections.
This past week we saw
stops being taken out and I gradually was moving out of stocks accordingly
and by Friday I didn�’t have much left and wasn�’t keen on the action we were seeing.
Luckily we didn�’t get hurt here and now I�’ll
be looking for some good shorts in the week and weeks ahead.
Good market correction
last a couple months before they build buyable bases.
We should see a few days
of rest or moves higher before we see great shorting opportunities so being
patient and very selective now is key to survival
and prosperity.
Enjoy your weekend and
the fireworks to come.
Thank you very much for
reading.
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