Silver's "Sept." futures contract weekly reversal is a launching point for retest of 2010 highs. This week we saw again more proof that there is no strength from shorts in silver. As we come to the close of July the metals markets are starting to begin a new cycle of volatility.
On Monday July 26, 2010 the Silver market could not advance beyond the 18.30-35 level in the Sept 10 contract and this created a low risk for a near term short. Again if you do not have signals being generated and validated then trading is a nightmare. So going home short from the close of Monday at 18.20 made sleeping easy and waking to watch the confirmation on Tuesday was like watching a "one horse" race.
But triggering the reverse from short to long at 17.35 on Wednesday was tons of fun. So as we have held longs from the 17.35 level... the close today is punctuated with the sound of money in the bank. Now prudent money management dictates we slide up our "Sell Stop" order under the market to 17.75. Just to make sure our back door is covered.
Now as we close the month of July it is good to reflect on where the metals markets are.
Copper that "red headed" beauty has been again rewarding our clients with profits all during July for trading both sides of the market. But new longs from July 19 & 20 have been well rewarded as any positions created below $3 have been well rewarded as the month of July ends with futures closing above 3.30 in the Sept 2010 contract.
The bigger issue for copper is that it is that Copper is closing on the High of the month, above last weeks close at 3.18! While fighting off a strong downward mid -week reversal, bouncing then closing on the high of the month!
God I love this "Red Headed" beauty.
Copper appears to be staging a move that should be able to push past the 3.62.... 2010 high of the year!
Gold staged a weekly reversal "up" this week after a test of 1157 in the Oct.2010 futures contract. Closing on the highs of the week 1183. Gold has now moved into a slower pace and is floating higher for now. With consolidation patterns, as the other metals keep pushing the entire metals group higher. Gold is trading above the highest monthly close for 2009... still! While having pushed through the 2009 highs of 1226... 2 months ago.
So Gold will have corrections and the wall street stooges of the media will try and use these to spook small investors out of gold and silver..... You buy the Dips!
Gold is not tied to what Silver does! All Metals have a life of their own. Near term a sharp run up to 1450-1475 would most likely see a sharp correction. But the real bull move in Metals will remain intact for a long time. Riding the waves requires the willingness to trade the market and be flexible and forget the clowns in the business media!
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