Category Archives: Precious Metals

Gold & Silver CoT Reports

Yup, improved a gain.  A lot of good it did precious metals bulls today, but we can bet that the goons covered shorts again today (data are only through Tuesday) and I would assume speculators continued to puke.  Got to play the game folks, in the casino at least.  This has nothing what so ever to do with real physical gold.  Note the open interest on silver; that is in line with the power of today’s thumpage.  A coming low in these metals should be very interesting.  Click the graphics to de-minify them.

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SI

HUI Weekly Updated

Here’s the weekly HUI chart grappling with the key parameters we noted yeseterday.  Frankly, I don’t care which way it breaks * because I have been practicing what I have been preaching, which is patience, discipline and positioning for strength.

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* Well I do care insofar as some good people have gotten hurt by following some not so good peoples’ faulty analysis, but you get the point.

HUI: Mr. Green & Mr. Red

I want to show you the weekly chart of HUI that NFTRH has been using along with monthly and daily charts for much of the last year.  The dailies controlled the short-term and kept us aware (and out of harm’s way) that a breakdown was very possible, even likely, during the Ukraine noise over the summer.  The monthly gives other parameters that you can see if you click the Big Pic HUI, Au & Ag link above.

The weekly however, has guided NFTRH subscribers with Mr. Green and Mr. Red, otherwise known as the green uptrend channel and red downtrend channel.  Mr. Red scored a blow to Mr. Green’s gut when the sector rightfully dropped as the Ukraine hype wore off *, leaving it with little more than its incomplete (at best) fundamentals.  Now it is Mr. Green’s turn.  He needs to defend himself by defending the 205 to 210 zone.

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Silver’s 4th Support Test

We have been noting consistently in NFTRH that the more times something tests support the more it is likely to fail.  That’s just the way it usually goes.  In spite of that I bought ‘bounce’ Calls yesterday and felt the sector has a good chance of bouncing.  Then I got a Hammer in the evening and proceeded to taunt the shorts with it.  Today?  Right back to Palookaville.

They sure don’t make it easy.  Hammers can be followed up with an iffy or bearish day and manifest bullish the next day.  Or they can just crap out and fail.  But as of now I am still on the trade even as SLV makes a 4th support test I never wanted to see in the first place.

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SLV… If I Had a Hammer

[edit; make a couple posts taunting the shorts and the metals are down again the next morning.  Yeh, sounds about right]  If I had a ha-amm-er… I’d hammer in the morning… I’d hammer in the evening… all over this la-a-and.  Isn’t that how that 60’s song went?  Well SLV has a gap down to scare everyone out and a Hammer at the end of the day.  I feel okay about my calls because I have a Hammer.  I feel better about it then I did when I bought them this morning because at end of day I have a Hammer.  It’s a start anyway.

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SLV has now officially destroyed whatever that hype was that drove it too fast (nominally and in relation to gold) in June.  And it did so on volume.  Going the other way, check out DSLV sporting the Hammer’s opposite, a bearish Shooting Star.

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Insert here all the usual disclaimers about confirmations needed and TA (especially candlestick work) is just a probabilities tool, not a refined science.  But I have a Hammer and that’s something.

Gold Miner Shorts Rammed

There is a lot more to the technical picture as we noted in this morning’s NFTRH update, but as the update with the good, the bad and the ugly concluded… “I would not be surprised if today or tomorrow brings a capitulation to a bounce at least.”

Here is Junior Miner Short JDST painting its 2nd bearish engulfing candle in 2 days.  Couldn’t happen to a nicer bunch of guys.  Hashtag: #Reamed (for 2 out of the last 3 days and maybe more).

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Dec. Calls on SLV

I picked up a few SLV 18 calls for December.  Hey look, it’s money I can lose.  But the world is hyper bearish now.  Hey, the chart guys have the charts to prove it!  And they are right, things are technically bearish in the precious metals.  Things are also maxed on sentiment and TA is not the only tool in the bag.  Worth a shot.

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Not that the post needs a disclaimer, but this is obviously a gut feel trade and don’t try this at home unless you are prepared to lose your principal.

Sentiment Shifting for Gold Bugs

Warning… Condescension ensues… NFTRH 307’s opening segment, dated 9.7.14:

From a post on the HUI at the site last week:

“There are worse things that could happen than filling a gap and scattering the wrong kind of gold bugs back out.  Then it would be up to the longer-term charts to do the heavy lifting if the daily does fulfill this downside potential.”

The gap was filled, the top end of the anticipated support zone was reached and indeed, the wrong [i.e. momentum players] kind of gold bugs are scattering back out.  The hard sell down on Thursday was very likely due in large part to the selling by traders with a fetish about gold as a geopolitical or terror hedge.

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GDXJ, 60 Min. View

Today we find out if it was just another short covering rally at the end of the day or the start of a decent bounce.  The failed attempt at the end of last week did allow GDXJ to build in some positive divergence with a lower low as HUI satisfied 220, a technical target (there’s another potential and valid target lower).  But it’s just a 60 minute chart, so the divergence is minimized.  Ladies, place your bets!

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Reversal in Gold Stocks

Well, at least it looks like a reversal in the gold stocks.  Right at the 220 measurement too.  Now we enter the realm of ‘Real or Memorex?’, bounce or rally resumption?  There is a very logical target lower if this proves to be just a bounce.  But 220 is viable too.  So it’s just going to take ongoing work… and gold fixing itself technically.  That’s a biggie.

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But for now I am just glad I got rid of this toxic thing yesterday…

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