Although I have returned from my mini-vacation, the market commentary and trade updates will remain on the light-side this week as I spend some more time with my family. The week of the 4th of July holiday is typically a light volume trading week and as such, is often prone to whipsaws and false buy & sell signals (failed breakouts). Best to keep things light this week and maybe give a little extra wiggle-room on your stops.
With that being said, I do plan to post a few charts asap. The SPY/$SPX has slightly exceeded the top of the resistance zone so far today after a very sharp reversal into the close on Friday. On Thursday, we did see an intraday break above the top of the zone but prices failed to hold the breakout, closing back below. Therefore, let’s see if today’s break above resistance holds into the close (which increases the odds of a backtest of the ascending channel, bullish) or if the intraday breakout fails once again (bearish).
So far we’ve seen some very bullish price action on SLV over the last few trading sessions with the etf making a sharp reversal on Friday to print a potentially bullish hammer candlestick close right back on the key weekly support line (downside target) from the recently posted SLV weekly chart. All in all, very bullish price action so far, as the intra-week break below that key support level likely served to flush out a lot of weak handed longs and suck in some more shorts (which could provide fuel in the form of a short-covering rally). Of course, this could prove to be nothing more than an oversold bounce so I will be monitoring it closely over the next few weeks.
Just about every one of my favorite gold & silver mining stocks that were posted Wednesday morning are already good for double-digit gains since then & could have a lot more room to run. However, some of those stocks are approaching the first decent resistance levels and so I’ll post a few charts asap for anyone wishing to take some quick profits or maybe even add to their positions once/if those levels are cleared.
Finally, on an administrative note, I’ve received several emails about the Contact form on the site not working properly. Apparently, some messages are being sent while others are not & this might have something to do with some recently added spam filtering software installed on the site. If you do receive an error message when using the form, try sending the message a second time as the issue seems to be intermittent. I’ll have my programmer look into the issue asap and will post an update once it is resolved.