Michael Noonan: Last week was an homage commentary to the market forces, what we always attribute as being the most reliable source of information. For the first time in many months, we began recommending the long side in futures, starting on 7 August: 19.42 for silver and 1308 for gold. We have been in and out a few times but continue to remain long, adding on Friday’s strong rally.
The “news” has not changed all that much, with many PM proponents still promising the substantially higher prices. More articles are beginning to assert “Gold/Silver is ready for a substantial move higher,” type-of-hype. Of course, these are the same people who have been singing the same tune for well over a year. The sin in lack of timing gets glossed over in the [old]“new” drumbeat.
It can be asserted here, on record, that we have shunned the long side of paper futures for quite some time over the past few years. There were a few buy attempts near the lows of the 18 month trading range, but nothing of any duration, simply because the market was not primed for long positions. That appears to have changed, not because we say so, but because the market is making the statement in the form of price behavior.
The early probes to the long side, since 7 August, were always cautious with an eye out for getting hammered, as in some of the unwarranted take-downs in April and June. There was an initial lack of confidence, based on what the market had done, but the developing activity of the past few weeks has altered that view and puts it more in line with all of the ardent beliefs in the “not-allowed-to-show” Demand side of the equation.
This was addressed almost a month ago in “Newton’s Third Law Is About Ready To [Over] React. Be Prepared,” The widely recognized artificial paper market manipulation, by the criminal central banks and Wall Street enterprises, [if you, or anyone else you know acted in the same way, you would be in jail, branded as a financial "terrorist," the new noun used by government to curtail all Rights and suppress free speech].
The Truth, that which almost all of us seek, is always to be found in reading the charts. They may be difficult to read, at times, but those times are also a message, perhaps just to stand aside. One does not have to be technically astute to understand the logic of developing market activity as it unfolds in a chart. Common sense is all one needs to follow what is presented in them.
Friday was another good day for gold and silver. It was similar, but not nearly as time sensitive, to last week’s “Buy Right Here Right Now,” scenario that began a very strong rally, [Fundamentals Never Say When. Charts Do And It Pays To Listen, 3rd and 6th charts]. The 6th chart is an intra day on silver, and it shows the entry/exit levels since we started recommending the long side.
The area identified as potential support came from our 10 August chart, using information that the market provided to make a logical conclusion. [Only Votes Cast In Elections Count. Same For Markets, see 1st chart for gold, 3rd chart for silver, below]. The weekly is more helpful for context, where the daily and intra day are used more for timing.
The overlapping bars, since the last strong breakout, tell us that buyers and sellers are in balance. From balance comes unbalance and a trading opportunity. The market has given a few clues as to which way the unbalance direction would unfold. Firstly, there was a strong upside bar that preceded the small 5 day trading range, TR. Another clue comes in recognizing how little price retraced the gains from the rally 7 bars ago. It shows a weak reaction, and we know that weak reactions almost always lead to higher prices.(...)Click here to continue reading the original ETFDailyNews.com article: Gold & Silver: Those Heeding Market Activity Are Being RewardedYou are viewing an abbreviated republication of ETF Daily News content. You can find full ETF Daily News articles on (www.etfdailynews.com)
- Is This The End Of The Bull Market In Gold and Silver?
- Gold, Silver and Miners Remain Junk Grade Investments: SPDR Gold Trust, iShares Silver Trust
- U.S. Dollar Retreat Could Ignite The Gold and Silver Market
- Volatility In Silver and The Market Vectors Gold Miners ETF (SLV, GDX)
- 3 Must-Haves For The New Generation Of Gold Companies: Market Vectors Gold Miners ETF, Silver Wheaton Corp., Vale SA (ADR)
Nasdaq quotes delayed at least 15 minutes, all others at least 20 minutes.
Markets are closed on certain holidays. Stock Market Holiday List
By accessing this page, you agree to the following
Press Release Service provided by PRConnect.
Stock quotes supplied by Telekurs USA
Postage Rates Bots go here