Fun stuff. Gold, silver, platinum

091130gldTis the season to begin thinking about wearing this stuff instead of  trading it.  But first we have to manage our trades before we hop off to breakfast at Tiffany’s.

The last gap at the top here is the immediate concern.  This particular kind of gap can be an exhaustion gap — meaning this hand of the game is over and a plunge is at hand.  But on the general panic caused by Dubai wanting to welsh on its bets buyers seized the sell off as an opportunity to get in.  And they are still buying today.  Exhaustion gaps are quickly closed, but this closure looks bullish instead of bearish, so we won’t be doing anything with our gold positions.

Now — careful — very aggressive traders might even be buying here with the stop 2% under yesterday’s low — on this position only.  You might trade yourself into a trend position.

We won’t be doing this although we can usually be depended on to do foolish things like this.  Why?  Well, we’d like to see some consolidation, or a downwave — or, viola’ a new high before we position build.

The Basing Point  stop (wave lows) is so far away it might as well be in Dubai — the low of October.  That would occasion some teeth gnashing even for those as tranquil as ourselves.  Friday’s low with a 5% filter would probably be all right, and if we see a reason to cut and run we’ll certainly shout it out.  A big black powerbar down would be such a case.

091130pgmBullishness continues in platinum.  The extreme bar 5 days ago should have been a reversal signal but instead traders have continued to push the price higher.  This could be a chance for adventuresome investors to trade their way into a position using the tactics described above for gold.

091130slvSLV silver rather than skyrocketing is waving up and waving down.  Probably the least risky to buy, but the silver bears are always waiting to chew your leg off.  That would be ameliorated by a 2% stop under Friday’s low.

These markets will continue to be important for some time.  Gold $5000?

Our kind of analyst doesn’t think like that.  We concern ourselves with what to do today.  But if it goes to $5000 we will be there.

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