silver smashThere is an FOMC announcement on Wednesday. Then, Barrick Gold Corporation issues its quarterly report on Thursday. On Friday, the US labor department releases the jobs report.
It’s very likely that at least one of those reports creates (or is used as an excuse for) a sharp sell-off in gold.

War Bird
Submitted by Stewart Thomson:

  1. The gold community loves (rising) gold stocks. On that note, I have a new buy signal in play, for swing traders.
  2. Please click here now. You are looking at the GDX weekly chart. In a trending market, this 4,8 moving average series has a solid track record of getting investors in and out of intermediate trend moves.
  3. Minor trend weakness could be created by the release of three key reports this week. Both swing traders and long term gold stock investors should use should use that weakness as a buying opportunity.
  4. There is an FOMC announcement on Wednesday. Then, Barrick Gold Corporation issues its quarterly report on Thursday. On Friday, the US labor department releases the jobs report.
  5. It’s very likely that at least one of those reports creates a sharp sell-off in gold. That would provide swing traders and investors with a good entry point, to act on my buy signal.
  6. While a bullish moving average crossover is in play now, acting on that signal still requires some fine tuning. Substantial patience is required, regardless of how bullish the buy signal appears to be.
  7. Please click here now. That’s the daily chart for gold. Note the tentative sell signal in play on my stokeillator (14,7,7 series Stochastics) at the bottom of the chart.
  8. Gold is in a position of short term danger. It’s hard to know how gold stocks would react to a sell-off in gold, but if they did decline, both traders and investors should be very aggressive buyers.
  9. I’ve been a seller of gold stocks in this general price area, but on any tiny pullback I’ll be a much more aggressive buyer, because of the increased number of bullish technical events that are occurring on a daily basis.
  10. I’d like you to take a closer look at the gold price action. To do so, please click here now. That’s the hourly bars chart for gold. Gold has been trending higher, within a channel.
  11. Note the thick blue and black trend lines that define the channel. Since peaking in the $1348 area, gold has traded in a very tight range, forming a small triangle.
  12. It’s likely that one of the three key reports this week will trigger a move out of that triangle, down towards either $1266 or up to the $1380 area.
  13. If the move is up, traders need to book more profits, and that move would really “solidify” the GDX weekly chart buy signal that’s in play now.
  14. Silver stocks can dramatically outperform gold stocks, when a trending move gets underway. Is there also a buy signal in play on the SIL-NYSE weekly chart, for swing traders?
  15. Yes, there is a key buy signal. Please click here now. You are viewing the SIL weekly chart, and I’d like you to look carefully at the moving average signals that appeared in the summer of 2012.
  16. Most investors use the 50 and 200 day moving averages, but that subject investors to enormous drawdowns. My 4,8 weekly chart series has the benefit of very limited drawdowns, as you can see during that summer of 2012 period.
  17. The current swing higher has carried SIL from $10.54 to $14.19. That’s about 35%, which is a substantial move. Silver stock buffs should wait for a minor “hit” before taking action on the buy side.
  18. For gold bullion swing trading, I like to use a little bit longer term moving average, to smooth out some of the false signals that can occur.
  19. Please click here now. On this weekly gold chart, I use the 5,10 moving average series to identify potential trending moves.
  20. Note the action of the Williams oscillator, at the top of the chart. I’ve highlighted part of it with a big red circle. Oscillators work pretty well during a period of sideways price action, but the moving averages have superb track records when a trend is in place.
  21. The Williams indicator generated a lot of false buy signals over the past 9 months, while the 5,10 moving average series was impeccable. Using this moving average, a buy signal for gold is not quite in play, but not quite here.
  22. Silver bullion traders have the “privilege” of acting like gold’s little brother, in the market. Ironically, more false signals can be generated on silver bullion charts, than on silver stock charts.
  23. For swing trading silver, the 4,8 series seems to provide an optimal blend of managing risk and reward. Please click here now. A buy signal is closer than it is for gold, which should be good news for silver enthusiasts. There are more false signals, but if you want the upside potential that silver brings to the table, you need to accept either more false signals or bigger drawdowns.
  24. I never embraced the “growth with safety” trade (buy bullion and sell gold stocks) that was promoted by some gold analysts. Swing traders have a great “growth with risk” opportunity right now in gold and silver stocks, and with a dollop of patience, it should be a winner!

Special Offer For Website Readers: Please send me an Email to and I’ll send you my free “China Crash And Gold” report. If China’s economy has a hard landing, which commodities are most likely to be affected, and how? I’ll cover the key issues for you in this report.


Thanks!   Cheers          St  Stewart Thomson  Graceland Updates


2013 Silver Maples As Low As $2.29 Over Spot at SDBullion!

  1. More good news for China and Russia.  The cartel and its liars will again knock gold and the US sheep will sell paper contracts as the Asians buy more bullion at lower prices.  This is exactly the type of flexibility Obama said he would have after the election.  The flexibility to sell America to its competitors as he  enjoys yet anther tax payers vacation.

  2. Watch those rates…10yr at 2.67% and jumped on ADP…set for new 52 week highs. This is the fed’s achilles heel. Where relatively good news is causing them to quickly lose control of rates, and investors front-running a “taper”. This is a very important development for the precious metals space.

    • “10 year at 2.67%….  causing them to quickly lose control of rates”
      You are getting ahead of yourself, 2.7% on the 10 year is not a big deal, it is not a loss of control, not even close.
      If the yield on the 10 year hits 3.7% to 4.7%, then you have something, but that’s still far away.

  3. Paper, Paper, Paper, Charts, Charts, Charts. The world is going to hell and and some people believe in Paper and Charts. I don’t and I see the Premiums on PM’s going up even more and it’s time to stack because the price is going UP not DOWN. Keep Stacking

    • Agreed Charlie! Charts and paper are no longer relevant in this global climate. Unprecedented twists and turns, the eastern hemisphere vacuuming up metals like dust from a rug, martial law looming, premiums at 40% plus or minus………I think I will go with that intel before analyzing charts. Charts depict historical moves and never before has there been such a global disaster looming. There are no relevant charts since this has never happened before! This is all coming at us like a freight train rolling downhill without brakes. I believe in phyzz, not paper. I’m stickin with stackin’ too!

  4. I used to see 5-15% premiums on Ebay, now I see 30-50%, and the supply is dwindling fast! That speaks volumes! The west is following the news script for guidance while the east sees through the BS and keeps scoffing metals up as fast as they can. Sadly, the American citizens are so indoctrinated that they STILL listen to and believe what the mainstream says…….”Gold bad….paper good!” Well, if you are into paper still at this point, just make sure you are holding plenty of paper because if you don’t hold it, you can’t burn it for heat!

  5. …Would love to keep adding at 2009 price levels….and will  long as I can!
    When get back to April 2011 Silver prices or Sept 2011 Gold prices…..or above  it’s gonna suck to try ‘n add!

  6. Charts dont matter and fundamentals don’t matter in a rigged market so I hope everybody understands that, doesn’t matter what the best of the best gold financial experts says and predict…. These cartel trolls will do whatever they please to keep your money in the bank acct and no where else. Gold won’t move till the collapse, when that is ? Only the casino owners know

  7. I am genetically Cheyenne, German, Irish, All American. The Irish in me says dump your fiat, the German in me says gold has bottomed, and the Cheyenne in me says gold will hit 2000.00 by October. Who am I to argue….BUY NOW

  8. “It’s very likely that at least one of those reports creates (or is used as an excuse for) a sharp sell-off in gold.”
    Two words… “buying opportunity”.  😀
    Two more words… “dry powder”.  lol

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