Thursday, April 16, 2009

All That Glitters Isn't Always Gold

When it comes to trading the metals, gold and silver have always been been in the limelight. Everyone seems to be focused on these two metals but if you're brave enough to look beyond gold and silver you'll quickly discover that copper, platinum and palladium have been on a tear over the past few months.

In the above chart you can see how platinum, palladium and copper have been performing better than gold and silver since late February. One possible reason for this strength may be due to the stimulus package but as a technician I really don't care why, I'm more interested in reading the charts. Money has been leaving gold and silver and moving into base metals such as copper and zinc. Platinum and Palladium seem to also be in demand and are in obvious uptrends.

I'm sure at some point gold and silver will turn around and head back up but for right now the choice metals appear to be copper, platinum and palladium.

1 comment:

Anonymous said...

Hi Kevin. What I thing about market.
Sentiment - Between Yellow and Red Alert
These levels of compliance were never very good for the market. We are already extreme levels. I believe a short term top is supported also on indicators of current sentiment. At this level I say we are between a yellow and red alert.
Only three graphics to explain better.
Spx - Nice Wedge.

We should be very close of top. Mybe monday a high residual above the last friday.
If no break in the closing 885 this is an area of Top.
Below 885 should expect a visit to 780 mybe 750.
835 important to break the pattern of recent weeks.
Forming a rising wedge (bearish) in recent weeks confirming loss of momentum.

Close above 885 next level 905-920.
Close above 945 (MM200) should see a visit to 985-1010.
In the graph are represented the major area of resistance for the next sessions.
Enjoy. Big trades for you and for all.


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