Platinum Price Takes The Lead…AGAIN

October 29, 2016

A very choppy week for stocks as we continue to get mixed earnings, which means equity markets are all over the pond…giving us no trend at all.

I went to cash early in the week, then tried a few small trades only to be stopped out, so I continue to wait.

Last weekend I talked about some three days of tight patterns in the miners - as I was looking for a nice continuation higher Monday, but it never came. I was stopped out of my miners’ position near cost - so no big deal.

Patterns work sometimes, but sometimes they don’t…especially in a non-trending market such as we have now.

Gold ended the week up just 0.72% - and still it’s holding the major support area at the 200-day moving average. This rising channel isn’t the best of patterns. However, as long as we stay above the $1,260 level, we have to expect the next move to be higher.

In general it just seems like there isn’t going to be much action until after the election…and then who knows?!

With a new FBI probe into the Hillary emails - and Trump continuing to be Trump, I just have no clue as to how markets will interpret this farce of an election.

If I can’t see a compelling case to act in the charts, I don’t. I’ll sit in cash and wait…and wait… and wait for setups and better action to materialize. Nonetheless, I may try the odd trade or three, using tight stops right around my cost basis to keep a solid feel for the action.

I’ve seen several stocks begin what looks like a nice move, and act great the first day, only to fail the next day. One day wonder moves are not conducive to making any major profits.

Silver was a bit better off gaining 1.73% this past week. The 200-day average is still holding strong. To be sure we just can’t muster the strength to move above $18. Friday did see increasing strength on solid volume. However, until we break above $18 with more solid volume, there isn’t much to say or do.

Platinum had a solid week rising 5.27% - and appears to be leading precious metals higher. There is good action from platinum here breaking the downtrend line and showing some strength on increasing volume Friday. The $1,020 area is the next resistance level to watch - and hopefully gold and silver will follow the lead of platinum higher.

Palladium was the lone weak wolf this week losing 0.71%. The $600 level and 200-day moving average are holding - so let’s just see how the week plays out.

Platinum is the one to watch in the week ahead - as it seems to be taking the leading role. Therefore, let’s see if this can become a trend or not.

During the last major run higher in precious metals leading up to the 2011 top, platinum did lead much of the way…so let’s see how this potential new trend plays out.

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Warren Bevan is a renowned trader who’s honed his craft over the years learning the styles and techniques of Jesse Livermore, William O’Neil and Dan Zanger and forming his own unique style. He focuses on making money and going hard when the right markets present themselves and during the rest of the time focuses on capital preservation.  He focuses on the leading fast moving stocks during the good times.  He is a proud Canadian, traveler, explorer, and consummate market geek who tells it as he sees it. Warren’s website is www.wizzentrading.com and his email address is warren@wizzentrading.com

The 1849 Gold Rush sped up California's admission to the Union as the 31st state in that year.