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We’ve
supposedly got Greek elections coming up this weekend, or do we?
Apparently
the ballot box folks are thinking of striking and putting this gong show in
high gear.
All
I do know for sure is that markets are waiting with baited breath for
something, anything to happen over there.
The
markets have been in a pretty tame range now for the past week and a half or
so but they are looking to move soon. We need some sort of spark to push them
one way or another and honestly I have no preference as we can make money in
an up, or down market.
It’s
this rangebound trading that is pretty boring and
doesn’t offer much chance at making a profit so it’s best avoided.
We
are set for a large move though and I’m
primed and ready to pounce on it. Our next cycle is about to begin and this
is when we make the big money swing trading.
Metals review
Gold
rose 2.14% this past week in weird sloppy action. I’m not looking to
trade gold at all, only accumulate, unless a great
setups comes along.
Right
now it looks like a move above $1,635 could well take us to the $1,660 to
$1,670 area.
With
such political turmoil these days there is no telling where we are headed
whether it be pushed that way by pure market forces or false, manipulated
markets forces.
Either
way doesn’t matter to me. Bull markets always end with a bang just when
everyone is on the same side. We are still far from that type of sentiment in
the gold market and have a very long way to go on the upside no matter if we
head higher tomorrow or in a months’ time.
Right
now it appears we have more chance of sliding higher but that can change
quickly if more paper gold is dumped on the market.
Volume
was quite solid in both the GLD ETF and futures market this past week as gold
moved higher quietly. There is accumulation going on in a big way in the
physical market which is hard to gauge and now it seems futures contracts and
ETF shares area also under accumulation.
In
either a Greek exit, or a Greek bailout, gold should rise if left to trade
freely.
Silver
rose 0.04% on the week and remains in its pattern here. Silver tried to
breakout higher but failed on three occasions this past week. We need a break
either higher or lower and it should be here any day as this pattern is
coming close to a resolution. I’m obviously hoping for a resolution
higher!
A
break above $29 will quickly see $30 hit.
Volume
in the SLV ETF and futures market remains pretty uninspiring for the time
being but that soon should change once we breakout.
Platinum
rose 3.42% on the week and broke out Thursday from the long downtrend line as
well as the horizontal resistance level.
The
strong volume breakout is exactly what we want to see at key levels and as a
result this metal looks to be headed higher still. The 50 day moving average
here is holding it back but that should only last a few days, tops.
Once
the $1,500 area is cleared on volume then we will be shooting for $1,575 or
so.
Great
action here all in all that is very bullish.
Volume
in the futures market was perfect while the PPLT ETF did see an increase in
volume Thursday but not a huge amount. This divergence is something to
monitor if you’re trading platinum.
Palladium
rose 2.68% for the week and is trading within a great looking uptrend channel
here now. A continuation here to the $660 level or so looks like a sure thing
and then we will see how it acts around the 200 and 100 day moving averages.
Volume
in the PALL ETF and futures market is solid enough but we don’t need
huge volume while in a channel, it’s breakouts
where we need volume to confirm the move.
We’re
looking good for higher prices this coming week in palladium.
Fundamental Review
Thursday
was by far the most interesting day of the week as markets were rolling over
along with many leading stocks late in the day. The Nasdaq
was even moving under support levels and looking to head much lower, until,
lo and behold a leaked “rumour” surfaced whereby it was said that
central banks of the world were ready to basically print money and prop up
the markets if it were needed after this Greek show is done with.
It’s
not often we see such blatant manipulation, not even in the gold market.
Luckily
subscribers and I are sitting in cash waiting for a direction to be chosen.
I’ve been doing some day-trading as well and was lucky enough to exit
my short position literally seconds before this huge buying came in as it
looked like a low was in and the tight short moves we have seen lately mean
you must take profits very quickly, and I did.
We
were spoiled for a few weeks there with some large daily swings in leading
stocks providing an easy opportunity to make very large money on a daily
basis and quite safely.
Those
days are gone now but were very fun while they lasted. Hopefully we can get
some action going again very soon and make some more big money.
The
key though is being able to identify the good times and the rangebound bad times. Sitting in cash is a very important
part of trading and must be done a good chunk of the time or else
you’re capital will just be whittled away.
It
seems the whole world and markets are hinged on the Greek outcome even though
it’s a relatively small nation. The reason it’s such a focal
point right now is that it will set a precedent for other Eurozone countries
whom also face the same issues, mainly, too much debt.
There
is a G20 meeting is taking place early in the week down in Los Cabos, Mexico. The home of Tequila! They may need a shot
or two depending on how things develop in Greece.
The
meetings will likely come to one outcome. Print more money and devalue paper
currencies which will lead to gold increasing in value.
We
had three banks fail late Friday evening this past week. This makes it seven banks to join the 2012 list of biggest losers
so far in June.
The
largest news to come out of the week in my books is the Hong Kong stock exchange is buying the London Metal
Exchange (LME). This is an unprecedented move which takes the
Chinese one step closer to global commodity domination.
The
deal isn’t 100% yet though as LME shareholders must vote on it. The only
way they vote yah, would be if they were forced to, and they may well be as
the nation is in deep debt and heading further into debt, largely funded by the
Chinese.
The
LME is an old, stories institution rich in tradition and honestly I never,
ever thought I’d see the day that it was owned by a foreign entity.
This news came and went without a whimper but this is huge news.
To
be honest I’m glad it’s happened as it is ground zero for gold
manipulation and now we may see a very different trend emerge in the gold
market. Time will tell but I’m watching closely.
Kazakhstan is planning to increase they’re
weighing in physical gold to 20% of their reserves. I suggest you
follow suit if you haven't already. I prefer an even higher percentage in
physical gold but to each their own.
I’ve
always said that you should own as much gold and silver as allows you to
sleep well at night. That remains my view.
If
you’re Canadian like myself you are well proud
of our freedoms and freedom of speech. It seems this may soon be coming to a
close as parks Canada staff are now
banned from criticizing the government even while jobs and
spending cuts are taking place all around and among them.
I
don’t know who they think they are trying to tell someone basically
what they can and cannot say but I do know this will not go over well.
As
great as our land is up north here, and as strong as we appear to be
financially, we are hurting in many ways and austerity is taking place in a
large way and now some government employees are basically being told to shut
up and take it with a smile!
There
are going to be a lot more protests this summer in Canada and around the
world and deservedly so as it was the government who allowed our countries to
get into this mess which was mainly perpetuated by bankers.
I
may even join the protests if freedom of speech is on the line.
I
understand some austerity measures, and let them slide mostly, but if someone
is trying to tell us what we can and cannot say then I will not stand for
that and nor should anyone else.
I’ve
got to cut it off here this week. I hope you had a great week and have an
even better week ahead.
Please
join us for this next cycle whether it be up, or down. We can teach and help you to
make great quick returns with little risk in the types of market that is on
our doorstep.
Enjoy
your weekend.
Warren Bevan
www.preciousmetalstockreview.com
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