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Precious Metals: A Golden Fall

NEW YORK (TheStreet) -- Good news and bad news this week. The good news is stocks continue to work, as markets are acting well. We are going to have buy after buy rolling through for the summer, and that is great news.

If you've been reading my work, you know that we've been waiting in cash mostly since March, but now we are back and taking trades in the right stocks at the right times. It is working very well, so far.

As for gold, it broke down hard last week and saw lots of follow-through. Gold is in serious trouble and not something I'll be looking to trade for some time -- perhaps even many years, as its bull market may be done now.

That is not set in stone if gold can hold the $1,000 area, and we should see that happen by the fall.

The other piece of good news is that there are always places to make money. Gold was a great place to do it for a decade, but not anymore.

Let's take the longer view and look at the monthly charts who give a much better big picture view.

Gold (GLD) lost 3.29% this past week and broke lower out of the pattern on the daily chart I showed the last few weeks. Volume has been heavy on the downside, which shows lots of conviction.

Gold doesn't look so bad on the monthly chart, but the action is telling me that we are going to test $1,200 pretty soon. If that can't hold, then we are going back to $1,000.

Gold has to hold $1,000 or it will move back to $700.

So many people remain stuck in the "gold is king" mindset -- they think of manipulation and everything else that keeps their hopes alive for gold going higher.

I really don't care much about the why; I care about the what. Gold is not looking good, regardless of why.

There are places to make money, and gold is not one, unless you're shorting it.

Up next: silver and platinum.

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