Commodities continue to climb with several commodities making new highs for the year. The equities market continues to push higher with 3rd quarter earnings coming in better than expected. This good news has aroused more investors to put what's left of their money back into the market which has been the fuel for this recent rally in stocks.
Here is my concern:
The market continued to make a new yearly high last week, company earning are better than expected and more retail investors (average working people) are dumping their money back into the market again because EVERY thing is going up in value and all they need to do is buy something. When it's this easy to make money in the investment/trading world something drastic usually happens not long thereafter.
Here are a few charts for this week in precious metals and energy.
Precious Metal Stocks – Gold Bugs Trend
Gold stocks have performed well in the recent couple weeks. I figure we will see some sideways price action before another leg higher. The question is how far will this pullback go?
As you can see there are two trend lines which make for solid support levels. I will be looking for a low risk setup around those levels.
HowToTradeGoldStocks
Precious Metal GLD Gold Fund
Gold had a great pop higher the first week of October but now it looks ready for some sideways chop. I tend to look at precious metal stocks as a leading indicator for trading gold so before we put more money to work in GLD I want a buy signal for gold stocks also.
HowToTradeGLDETF
Precious Metal SLV Silver Fund
Silver SLV and gold GLD generally move together with silver being the more volatile of the two on a percentage basis. As you can see from the chart below the support trend lines are much father away from the current price. If you don't want to give back too much of your gain then raising your stops is a safe call.
