Jack shows how in the big picture things are looking good for gold and silver, but for the short-term, well, that’s a different story. Here’s the details…
Our proprietary cycle indicator is up.
The gold sector is on a long-term buy signal. Long-term signals can last for months and years and are more suitable for investors holding for long term.
The gold sector is on a short-term sell signal. Short-term signals can last for days and weeks, and are more suitable for traders.
Speculation is in bull market values.
Our ratio between gold and gold stocks has been effective in identifying the price action in both bull and bear markets.
– Since breaking down in 2011, the sector has been in a bear market with periods of consolidations before the trend resumed. Untrained eyes would jump at those consolidations as the beginning of a bull market.
– The trend reversed in early 2016 with a breakout, followed by an agonizingly long consolidation so far.
Open interests are now at levels of previous bottoms.
Silver is on a long-term buy signal.
SLV is on a short term sell signal, and short term signals can last for days to weeks, more suitable for traders.
The precious metals sector is on a long-term buy signal. Short term is on mixed signals. The cycle is up. COT data is supportive for overall higher metal prices. We are holding gold-related ETFs for long-term gain.
Jack Chan is the editor of simply profits at www.simplyprofits.org, established in 2006. Chan bought his first mining stock, Hoko Exploration, in 1979, and has been active in the markets for the past 37 years. Technical analysis has helped him filter out the noise and focus on the when, and leave the why to the fundamental analysts. His proprietary trading models have enabled him to identify the NASDAQ top in 2000, the new gold bull market in 2001, the stock market top in 2007, and the U.S. dollar bottom in 2011.