Good Entry Coming For Metals And Miners

Evidence supporting a major low is mounting, and it should be safe to accumulate long-term positions during the next pullback. The current cycle should top sometime next week followed by a correction into the first common cycle low. I anticipate a retracement of approximately 50% once the cycle high arrives.

On average, the miners will outperform the metals about three-to-one. There should be magnificent gains over the next 3-5 years.

I prefer investing in silver versus gold and will look to buy long-term (2019) call options in SLV later this month. I will also buy silver futures during the next pullback. The Silver ETN (USLV) is a triple-leveraged play on silver if you don’t trade options or futures. Use leverage sparingly; an overleveraged account can destroy your portfolio.

The odds of a major bottom are growing, but it’s not a guarantee. I will enter about 50% of what I usually invest during the next correction. Once a major bottom is confirmed, I’ll add the remaining 50%.

I unlocked the color gauges, and prices are still in the excellent buy zone. The gauges are long-term indicators and aren’t intended for day trading. The next pullback should make for a good entry; I’ll advise members when the time comes.

Gold weekly

Prices rallied to the 10-week EMA and formed a price swing off the $1,124.30 low. Two white candle closes above the 10-week EMA will be enough to reinforce a major low. In Elliott Wave terms we likely reached the wave (2) low, and the 3rd wave higher has begun.

9

Gold Daily

I’ll be expecting a top next week followed by a pullback into a cycle low. The lines are simply for illustration purposes and not an exact forecast.

8

Silver weekly

Prices could rally to touch the MA crossover around $17.25 next week.

7

Silver daily

Depending on where prices top, we could see a pullback back to around $16.30 in silver. I would place a stop just below $15.68.

6

HUI

Prices dropped to close the gap and then rallied back above the 195 level. I will have to see where the cycle tops before I can provide correction targets.

5

GDX

Prices closed the price gap and managed to end the day above the $22.35 level. There was significant buying on weakness once again.

4

BOW

Buying came into miners again indicating a bullish trend. Courtesy of the WSJ.

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GDXJ 

Junior miners closed their price gap and could reach $40.00-$41.00 before correcting.

3

SPY 

There was a big buying on weakness number Thursday, forecasting a potential rally. Another higher close above 207 will nullify my plans for a C-wave correction down to 220-221.

2

WTIC 

Prices breaking below $53.00 next week should lead to a 2-week price correction lower. I still expect the 200-day MA to support prices.

1

We should get a good entry in metals and miners within the next 2-3 weeks. I’ll update members with potential entry levels when the time comes.


 

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