It Was Tough Last Week for Me, but Gold and Earnings Offer Hope
NEW YORK (
TheStreet) -- Last week was a bit of a tough week for me.
Last Monday showed some signs of weakness after the holiday week and I ignored (or discounted) them, with recent strength in mind. Unfortunately, I was relatively heavy in leading stocks that gapped down Tuesday and never recovered.
Gains disappear and turn into losses, which doesn't happen very often to me, but you just never know in this trading game. When that does happen, all I can do is regroup and make it and more back, as I always do.
No fun, but it is all a part of the game.
It looks as if we still need a bit of time, but some bases are really shaping up well. Also, with earnings season really ramping up in the week, seeing some of the major leading stocks reporting, we should get some great moves.
Stung by some quick-hit losses, I didn't do any trading for a few days. Sometimes everyone needs to regroup.
I've taken losses in the past and tried to get right back in the game and make them back, but that has never worked.
Revenge trading always results in losses, so taking a few days off from trading and watching does much good.
You won't hear many people say that, since most people talk only about wins, but the reality is, everyone losses sometimes.
As for gold and silver, they are breaking out. However, mining stocks, which have been leading, are acting quite sloppy, so that is cause for some concern.
Gold did gain 1.48% for the week and looks good again for higher prices.
Some mining stocks are acting quite sloppy since breaking out, so that is something to be aware of. If you take the gold breakout at $1,330, then
stops at cost for now will save you any hassle, if it comes to that.
For now, the breakout should take us to the $1,370 resistance level, but you just never know with mining stocks acting a bit poorly.
Silver gained 1.51% this past week and is also breaking out.
Keep stops at the breakout level, or cost, at $21.25, if you take the trade.
Silver looks as if $22 is next, but again, miners are acting a bit strange after breakouts, so stops at cost are a must, in case we fail.
Metals are notoriously hard to trade, since they often look great only to fail, so time will tell.
Platinum gained only 0.94% for the week but is now solidly above the resistance level at $1,490, which I've mentioned for so long.
A nice breakout and now consolidation points to higher prices for platinum in the days ahead.
The uptrend line is quickly converging with the new $1,520 resistance level.
A break above $1,520 is a buy or add level, and the next major resistance level on the monthly chart is $1,600.
Palladium gained 1.79% this past week and is now into new highs, with blue skies.
With a move into new all-time highs, there is no telling where palladium will find resistance, but $900 is a good bet, since large round numbers so often act as resistance.
Time will tell.
All in all, the metals looked great this weekend, but we do have to keep an eye on the behavior of mining stocks that are breaking out but acting sloppy, in general.
As long as gold holds up, we should be good; but if miners continue to show failed breakouts, chances are high that gold will reverse, and that will take the rest of the precious metals with it.
Thank for reading and you can find out more about what I do for members as we focus on leading stocks for the most part at Wizzen Trading.
At the time of publication, Bevan had no positions in stocks mentioned.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.
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