OCT 15, 2014 I wanted to try something this morning , and that was to record the session and see if you could all follow along that way. I had my reservations, because I have a Boston accent, but hopefully you’ll be able to understand me despite that. I have taken extra time to also write out the notes, for those unable to hear this recording. When I listened back to it, there was a bit of a click sound at times, I apologize, but for the sake of time, I cannot re-record it this morning. I DO NOT know what it was, I was sitting still, but it sounded like I was tappping or scratching at the microphone (I wasnt )
This morning when I started recording (7:30 A.M. Eastern) GOLD was down almost $10 and $Silver was down over 30 cents …they have since recovered after 8:30. Whether that holds or maybe we sell off later, this report is likely still valid, so I am posting it even though they recovered. Below is the original report .
( For the recording link below …It is best to
1. right click over the link and open in a new tab. 2. In that nw tab, you’ll see “Download”, click that 3. your options to ‘save’ or ‘open’…just click open and it will play automatically
go back to this website and follow along. IF You arent good with computers, you can just read what I have written.
GOLD – Gold was down $10 in Pre-Mkt and I visited message boards . I kept hearing all over Yahoo, Kitco, etc ” Here we go, another slam down”, but We are not even at the 10 or 20 sma, and we could be testing out magenta trend-line. So selling today would not be bad…look back at MAY and DEC. During those runs, we often dropped to the 10 & 20sma on the way up.
$SILVER Silver doipped to $17 after pushing against resistance at the overhead 20sma. IF that becomes the lows, it would be the bottom of a trend line, as drawn in June when Silver dipped down. This is drawn , NOT to say we will see this, but to give perspective on the possibilities.
$USD – The USD has been very strong , and when I have thought that it would “Correct” in the recent past, it has dipped to the 10SMAand Moved higher (See SEPT)
I think this time we could “MAYBE” bounce & double top, but more likely we pull back now . This would be NORMAL , even if we dipped to my Magenta trend line, its only a 38.2% correction. This would allow the Metals to run up further too.
GDX – Re-visiting the DEC LOWS Notice that price repeatedly was bought up & sold off..this is what bottoms often look like. They shake out weak hands and the big money can scoop up the loose change and “Accumulation” begins to pound out a bottom.
GDX DEC lows VS Now – So if we drop today with Gold down $8 currently , it could look like this and be normal. what I AM watching id the MACD. See in DEC that even thought price dropped and brok to new lows (Shake out) the MACD never crossed back under. I will be watching that today and moving forward )
GDX MONTHLY The MONTHLY chart can be looked at as
1. A consolidation, continuation down later.
2. A Bottoming pattern. Look at the MACD and the HISTOGRAM in the lower box. Notice that on a monthly basis, we are AT LOWS, but the HIST has truned positive. This is encouraging and doesnt indicate a break down here I.M.O. Even a bounce to the upper trendline drawn ($28) is a nice score , depending on how you trade it.
Again, Gold & SIlver are down, but looking back to DEC lows and even the May lows, that kind of buying & selling is NOT abnormal. We have been conditioned to get nervous whenever the price drops and it is possible that Big Money can take advantage of that by bouncing price down around the lows to gather up the loose change that falls before them. IF The metals are not your thing…
There are some great opportunities that appear to be popping up in ENERGY. Beaten down & Hated energy stocks are starting to look good again. I like the looks of SCLN (Pharma stock breaking out), and in the middle of a hot sell off, take a look at ARC. It has a mind of its own and good volume to back it up. So there are opportunities out there, you just need to dig around and then when you find something and enter your positions………Stay Frosty!