The following comments were sent to Myra P. Saefong, Financial Writer for Marketwatch.com, at 7:56 AM EDT.
_____________________________________________________________________
The Precious metals bull market is officially over. Just remember, you heard it here first. I say this with some trepidation because the markets love to see me eat my words and, frankly, I'd love nothing better at this juncture. But, from a technical perspective, no matter how oversold the markets have become, the markets have sufferred far too much damage. The only thing left to do is to declare the bull market to be finished and hope that they'll bounce back and rally sharply. But, as one wise old trader once said, there's no wishing or hoping when it comes to trading.
AUG GOLD, having flirted with its 100-day MA for a couple of sessions, broke down in overnight trade and is now looking to revisit the highs from January at around $589. Any close below this level and $550 is the next obvious target on the daily chart. JUL SILVER, after being above $15.00 a month ago, is also pushing down to its January highs of around $10.00. As Silver took out dollar sized chunks on the way up it's doing exactly the same thing on the way down. The thing that I find most surprising about this decline is the correlation that we've seen in the markets. As Gold and Silver rose (along with many other commodities), so did the stock market. As we watch Gold and Silver decline, stocks are declining as well. I expected the latter but not the former. The improbable has now become reality. I guess that's what I love about the markets. What may seem totally illogical is exactly what a trader should anticipate. In other words, never rule anything out when it comes to the financial markets.
Dale F. Doelling
Chief Market Technician
Trends In Commodities
No comments:
Post a Comment