Get Ready For More Downside

It was a quiet week for the most part as markets and many stocks setup new patterns to trade off of but in doing so have given us decent intraday moves which can be capitalized on.  I like to take one or two trades per day and am very selective in those trades.  

Day-trading is far from pushing buttons all day in my world.  It’s more like sitting around and waiting for just the right setup.  Usually after a support or resistance area is hit and the stock or ETF in question begins to roll the other way.

You can make good money this way but nothing compared to a trending market which we may now have as markets broke pretty hard Friday afternoon.  We look to be headed lower here now but how far only time will tell.

Our huge paying dividend stocks also underwent a good sized correction and they have always been major opportunities to load up and I was adding to some of them near lows this week as were subscribers.  Many of our dividend stocks pay well into the teens in terms of yearly dividend yields but they depend on low interest rates.

I for one do not think we are done with this low interest rate environment so I feel comfortable adding to them here.

As for gold and silver, they look ready to move lower here once again.
 

Let’s move into the gold and silver charts before I move into my much more in depth and profitable work for subscribers. Gold was all but flat in the end having gained only 0.17% this past week but it did have some intraday moves that were quite large and also overnight moves that were large.

Now it’s got a great looking bear flag that is set to break and push gold into new recent lows.

I talk about overnight risk often and I’ll take a stab at it right now and say that Sunday evening gold will break below the $1,375 area and bear flag, leaving us in North America out of the trade.

Gold is not done heading lower in my view from what I can see on the charts.  We are approaching a seasonal start to some strength but we may see another washout first.
 

    Silver fell 1.16% for the week and is barely hanging onto the important $22 level.  If we break below $22 then we should finally see a move under $20 where I’ll be looking for signs of a low having been put in.

You can short a move under $22 but I’m not so sure I will as there are better things to focus on but once I see a bottom put in then taking a long position that is leveraged a bit will be something I’m looking for. 
 
It may soon be time to also lock in some prices for physical delivery of more silver.  I’ll just have to see the action but we are heading in that direction.
 

    

Platinum rose 0.50% for the week and has a nice little descending base here.  It could well move higher out of this base towards the $1,600 resistance area but if the $1,450 support level breaks then look out below.

If gold and silver do indeed drop this coming week then I’d be a little weary trying to take this on the long side but then again they haven't been all that coordinated.  I’d be more worried if we see markets drop that platinum will also fall.
 

    
Palladium rose a solid 3.26% for the week.  Palladium has a steep rising channel and they don’t often end well.

We’re now approaching resistance at the $780 area so we must expect this channel to break soon.

Once it breaks we’ve got to see if it can form a handle to complete a cup and handle pattern or it may well plunge

While many traders and subscribers took the last week and a bit off as we setup for the next move.  Friday looks to have started the next move and that is lower.

I’ve said many times before that I don’t really care whether the markets move higher or lower as long as they are moving and range bound.  We can make money in up or down markets but not so much in flat markets.

Personally I really enjoy down markets since the moves are fast and furious and that makes for huge gains, especially when using some options.
 

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