FOMC Meeting Begins Tomorrow … Looking for Precious Metals to Begin Moving

As mentioned in my update on precious metals dated June 6th (click here), silver’s chart looks like it could be interesting going forward here soon.  One of the technical analysts that I follow wrote a blog piece dated June 8th that actually discussed how silver has a history of frequently making important lows/highs into FOMC meetings (the next one beginning tomorrow) – click here to read his piece.

Saying all of this is my way of reminding traders to pay attention to silver, gold and to gold miners for the next week or so … we may be on the verge of starting an expansion phase in these sectors.  Here are some charts …

Silver Futures (SI) – Daily Chart

$17.00 is still the level that silver futures has to take out to show me that it is trying to move higher …

Gold Miner ETF (GDX) – Daily Chart

Price for the GDX miners broke the daily ATR resistance level back on April 11th … price to me has “confirmed” that break higher with the consolidation since that date.  Now all we need to see is the desire and willingness to break higher.

Gold Miner 3x Leveraged Bull ETF (NUGT) – Daily Chart

I would think that NUGT should at least get to the 61.8% level in the SLOT resistance zone … that would mean price is getting ready to make a move up to about $31.60 or about 24% higher than today’s closing price.

WPM – Daily Chart

I am long a good sized position in WPM, a Canadian royalty mining company, in my retirement accounts here in Canada.  They announced another asset purchase recently … this one in cobalt as WPM’s management continue to move away from being totally dependent in silver where they originally focused the Company’s attention.  This is probably just another sign that traders should be looking at silver after years of terrible performance/returns.

Cheers … Leaf_West

Bonds – Are We at Near the End of this 3-Wave Structure??

I have been waiting for the TLT to break below the low from February 21st to possibly begin the completion of its current bigger time-frame price structure … today price broke below that $116.51 level and I think the next swing trade in bonds will be to the upside.  Here is what I am seeing. Continue reading

I Like JPM Here into Earnings …

I think Q1 earnings reporting season could provide the market with a much more bullish backdrop for equity traders … one stock that reports this week is JPM, which leads the bank reporting season off when it reports this Friday before the open.

JPM’s chart suggests that the most likely short-term path after the report is to the upside …

JPM – 195 Minute Chart

The trend strength histogram has pulled back into the Chop Zone and looks like it could be signaling an upcoming expansion phase.  If that is what is going to happen, then the break higher by the relative strength indicator suggests to me that the stock wants to go higher if the earnings report is anyway half decent.  I am long call options that expire in May.

Cheers … Leaf_West

Are Gold and Gold Miners Finally Ready to Go?

I wrote about a possible bottom in gold back in mid-October (click here), but for the most part the trades I put on  back then did not work-out.  No biggie as I was legging into that possible trade set-up and the amounts were in reality, insignificant.

I have started some new trades in NUGT and HGU (TSX Canadian exchange for my retirement accounts) today as I am thinking that maybe, just maybe, the US dollar, gold and the gold miners are ready to start moving.  Here is my view of the charts … Continue reading