Gold, Silver, Palladium: True Bull Market

By: Sol Palha | Wed, Apr 28, 2010
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"The injuries that befall us unexpectedly are less severe than those which are deliberately anticipated." ~ Marcus T. Cicero, 106-43 BC, Great Roman Orator, Politician

All the precious metals are behaving extremely well in the face of a stronger dollar; the standout player is Palladium. Palladium has refused to buckle under the face of a stronger dollar and instead continues to put in a series of new highs. This is what a true bull market looks like.

Gold has refused to put in a new 6 month low even though the dollar continues to trend higher and has put in several 11 month new highs and will soon most likely put in a series of new 52 week highs. This action suggests that once this consolidation/corrective phase is over, the odds of the entire precious metals sector exploding upwards are rather high.

In general the strength exhibited by this sector suggests that the smart money understands that the current strength in the dollar is not going to last as precious metals are now diverging from the dollar. On a percentage basis Silver will show the highest gains in the next leg up; prior to this we favoured Palladium and had a very strong buy on it from late 2008 to early 2009.

As soon as a new weekly buy signal is generated we will be issuing new entry points for Silver, Gold and Palladium bullion. We will also issue entry points for several stocks in these sectors.

ETF players can take positions in SLV, GLD, Market Vectors' Gold Miners (GDX), PALL, etc,

Players looking for more leverage can jump into ProShares' Ultra Silver ETF (AGQ) and ProShares' Ultra Gold ETF (UGL). Use pull-backs to open up new positions and strong pull backs to add to your position.

"We take greater pains to persuade others we are happy than in trying to think so ourselves." ~ Confucius, BC 551-479, Chinese Ethical Teacher, Philosopher

 


 

Sol Palha

Author: Sol Palha

Sol Palha
TacticalInvestor.com

Sol Palha is a market analyst and educator who uses Mass Psychology, Technical Analysis and Esoteric Cycles to keep you on the right side of the market. He and his partners are on the web at www.tacticalinvestor.com.

The information contained herein is deemed reliable but no guarantee is made about its completeness or accuracy. The reader accepts this information on the condition that errors or omissions shall not be made the basis for any claim, demand or cause for action. Any statements non-factual in nature constitute only current opinions, which are subject to change. The author/publisher may or may not have a position in the securities and/or options relating thereto, & may make purchases and/or sales of these securities relating thereto from time to time in the open market or otherwise. Neither the information, nor opinions expressed, shall be construed as a solicitation to buy or sell any stock, futures or options contract mentioned herein. The author/publisher of this letter is not a qualified financial advisor & is not acting as such in this publication. Investors are urged to obtain the advice of a qualified financial & investment advisor before entering any financial transaction.

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