In a market overrun with whipsaws and failed moves, our gold mining trades are holding their breakouts and reaching our initial targets. Not many market areas can make that claim.
Today, I outline multiple mining stocks and highlight critical levels of potential resistance for gold and silver.
It's been broad based appreciation in stock prices since that October morning.
Every US Sector is positive and many are up over 20%, just since October alone. The numbers are even better when you anchor back to when the new 52-week lows list peaked in June.
Historically, during bull markets you see more and more stocks going up and making new highs. In bull markets you see more sectors participating to the upside and more countries around the world breaking out.
This is exactly what's been happening for about 10 months now.
All these uptrends you're seeing in most stocks is not a new phenomenon.
I'm a big fan of Phil's work. He's the Chief Market Strategist at Blue Line Futures and a market veteran with more than 20 years of experience trading futures and forex.
Today, Phil shares with us his technical perspective on precious metals and discusses key fundamental drivers at play right now.
Fresh two-year highs for the Gold/SPX ratio stand out this week, as gold outperforms its alternatives. It doesn't get much more bullish than fresh absolute and relative highs.
With that as our backdrop, I had Jason Perz @JasonP138 of Against All Odds Research on the show to share his view of the precious metals space.
Buyers taking control of a market heading into the weekend exude confidence. And Gold bugs have done it two weeks in a row now and counting, as they reclaimed the former 2011 highs.
So what’s next for precious metals?
Well, if Gold priced in other major currencies is any indication (which I think it is), it looks like new all-time highs.
Silver is clawing its way back after breaking down from a month-long consolidation and undercutting a critical shelf of former lows.
As we talked about last week, it all comes down to risk appetite. Silver bid speaks to a healthy risk-seeking environment favoring all precious metals.