Stock market today: S&P 500 in weekly loss as trade war fears intensifyy
Silver continues to look impressive on many hard down days for gold.
Is it the new safe haven for metals market investors?
What about the other white metals platinum and palladium?
These are very exciting questions, and to help answer one of them. The key long-term silver versus gold chart.
On the one hand, tremendous undervaluation does not itself define an item as being a safe haven.
On the other hand, silver could continue to hold roughly steady or even rise over the next month or so, while gold continues to swoon.
From there, the most likely scenario is now that both could rise against fiat into the fall, with silver rising more than gold!
My suggestion: Silver isn’t replacing gold as a safe haven, but it is becoming an exciting performance haven.
Tactics? While silver is as likely to continue rallying as it is to dip, if it does trade in my $35-$34 buy zone, it would likely be a de facto gift that should not be ignored.
What about silver stocks? The interesting monthly SIL ETF) chart. Is this time different? I think so. The first two rallies were violent, which reflects an overall bearish/negative theme. The current one is much steadier. Also, while oscillators are overbought, there’s no significant greed in the market.
Many senior, intermediate and junior silver stocks are still in their own generational value buy zones, and I am currently focusing on those with the lowest price in my junior mine stocks newsletter.
In a nutshell, it’s a time to book partial profits on the big movers and buy others that are rising from huge base patterns with solid fundamentals in play.
What about white metal platinum? The fabulous PPLT physical platinum ETF chart. Partial profits can, of course, be booked after the “super surge” of the past few months…
But that surge is also a rally from the right shoulder of a truly massive 10-year inverse H&S base.
Here’s a look at the monthly chart for the PALL palladium ETF.
The base pattern is smaller than for platinum, but the chart is still technically positive, and an 80% surge in the price is indicated as likely to occur.
High-quality FOREX firms now offer leverage trading of all the white metals and oil, with incredibly tight bids and asks, providing fabulous market liquidity.
Having said that, my suggestion is to keep those accounts for gambling, and to focus on the fully paid ETFs (and physical metal itself) to play the bullish big picture with more serious capital.
Oil? The key buy and sell zones oil price chart. President Donnie’s “Drill Baby Drill” mantra was just replaced with “Bomb Baby Bomb”.
Ironically, the new mantra did everything for the oil price that drilling couldn’t do. The problem now? The problem is that with oil back near $65, frackers can’t make a profit drilling for oil when their break-even price is also $65. Drill counts should continue to fall. With the 2021-2025 war cycle now in its final six months, further bombing of Iran by the American government could be viewed as a kind of bear run “finale” for oil. The bottom line:
Oil is tremendously undervalued in the sub-$70 zone. Note the position of Stochastics at the bottom of the chart. Energy market enthusiasts can buy grub stakes in oil and oil stocks here while being ready to buy more at the next key buy zone at $43. I’m going long oil this morning, both in my gambling and investment accounts.
What about the world’s supreme money, aka gold? Unfortunately, a small H&S top has emerged on the daily chart.
I’d like to see the Stochastics oscillator turn up before getting excited in the short term. The $3250 and $3120 zone remain the next big zones for investors to buy.
A look at GDX. GDX is showcasing some positive action on down days for gold. In a nutshell, I like the $51-$50 for gambler buys, and $45-$44 for investors!
Thanks!
Cheers