Silver Triggers Early-Aug. Sell Signal
08/06/16 Weekly Re-Lay:
“Gold & Silver are showing preliminary signs of a reversal lower. Traders should be holding partial Gold & Silver longs from mid-Dec., w/open gains and have just exited 25% of Silver longs w/avg. gains of about $30,000/contract… [TRADING INVOLVES SUBSTANTIAL RISK!]
Gold has set a 1–2 month peak in the first 3–4 trading days of the month – in 2 of the last 3 & 3 of the last 5 months…In keeping with that pattern – of setting one of their two intra-month extremes at the beginning of each month in 2016 – Gold & Silver set highs on the 2nd trading day of the new month and reversed lower, quickly turning their intra-month trends down and projecting a new round of selling.
The expected scenario is for Gold (& Silver) to sell off into late-August – the next phase of a ~90-degree cycle that has timed intermediate lows (in either Gold, Silver or both) in late-Nov. ’15, late-Feb. & late-May ’16.
The XAU came very close to its 2–3 month LLH objective & remains positive until a daily close below xxx.xx (that would turn its intra-month trend down). If it is able to close below that level, the XAU could drop into xxxxxxx. [Specific trigger points reserved for subscribers only.]
3–6 month & 6–12 month traders and investors should be holding partial long positions in Gold & Silver (~25%) from mid-Dec. (~1046–1076/GC & 13.62–13.88/SI). Hold these until… [Specific trigger points reserved for subscribers only.]
Those traders should have just exited another 25% of Silver long positions around 19.800/SIU – on Friday’s daily close below 19.990/SIU – w/avg. gains of about $30,000/contract.” [TRADING INVOLVES SUBSTANTIAL RISK!]
Gold & Silver stocks remain positive and capable of reaching their multi-month upside objectives before selling takes hold (see Weekly Re-Layfor specific level). However, Silver has recently triggered a sell signal – increasing the likelihood that its initial 3–6 month advance is complete. If the XAU reaches its target and triggers the expected reversal signal… it could trigger the largest sell-off in Gold stocks since the beginning of this advance in Jan. 2016!
The latest signal in Silver is reinforcing the outlook for 3Q 2016… and the setup for what could & should be the (next) best buying opportunity in this decade! The next phase of ‘2016- The Golden Year’ could be the most surprising… and catch the greatest number of traders off-guard.
The most likely time for an (expected) accelerated advance in precious metals is approaching, BUT is NOT yet here. In fact, some (more) selling is likely BEFORE that opportunity emerges. Stay tuned…