Precious Metals, Commodities & Market Commentary

Between posting trade ideas, market commentary in addition to my own trading (as well as combing thru dozens of charts today), I don't have the time to post commentary & charts on all significant developments and so I just wanted to share a few things that stand out:

  • GLD, SLV & GDX have all solidly taken out those key resistance areas that were discussed in yesterday's video. This is unarguably bullish price action in the precious metals & mining sector & I do plan to follow-up with some charts and additional thoughts soon. With all of the recent whipsaw signals lately, I'm watching to see how the metals & miners follow up over the next couple of days, ideally to see if today's breakouts above resistance hold. An ideal entry or add-on to a GDX long position would be on a pullback anywhere from near today's low of 15.57 down to around yesterday's high of 15.28 (i.e.- a backfill of today's gap), with a stop somewhat below that level. As I often stress, it is important to make the proper beta-adjustment to your position size when trading the extremely volatile mining stocks, especially if trading individual miners or the leveraged ETFs in lieu of GDX.
  • USO (crude oil ETF) still looks poised for a nice oversold rally if/when prices break above the 60 minute bullish falling wedge pattern that was posted yesterday.
  • JJC (copper ETF) also still looks poised for a potentially sharp oversold rally (or more), with an long entry to come on the previously posted downtrend line.
  • Regarding the broad markets, my read on the charts indicates that as ugly (or pretty, depending on how one is positioned) things look at this point (QQQ down 2.22% as I type), it appears that we are likely to get another leg down today which would take out the LOD so far of 107.46.

Additional commentary & charts to follow. To reference any of the previous notes or chart on the securities referenced above, click on the associated symbol tag located at the bottom of this post (or use the "Select Ticker" drop-down box on the homepage.

Aug 20, 2015 2:16pm|Categories: Equity Market Analysis, Gold & Commodities|Tags: , , , , , , |Comments Off on Precious Metals, Commodities & Market Commentary