NEW YORK (TheStreet) -- Volatility reigned supreme again last week, and many stocks look to have put lows in now, just as earnings season is really heating up. Lots of big companies are reporting in the weeks ahead and could move this market and stocks higher if earnings are good. At least I hope that's what happens.
We're still mostly in a cash position with a few trades here and there, but we should be able to pick up quite a few stocks this coming week with so many lows now in.
As for the precious metals, the situation isn't so great.
Gold tried to break out early in the week, but silver was having no part of it. This was a warning sign.
I certainly didn't think we'd be down nearly $30 in a day, but when a half a billion dollar block comes up for sale when markets are quite soft the only possible result is a good old gold smashing.
There are a lot of manipulation theories out there, and they may well be true. But they don't make me any money; reading the charts and interpreting the action does. Let's move right into the charts and see where we go from here -- and it's not up.
Gold (GLD) fell 1.81% for the week and is now set up to head lower. Soon $1,280 will be tested, and more likely $1,260.
We've just got to wait and see how gold reacts at those levels. But if $1,260 can't hold, then chances are we head to $1,180, and that most likely means a much deeper correction down the major support at $1,000.
It's been a tough go in this space for a while now, so I've been avoiding it.
Of note is that silver is now leading gold.
Silver (SLV) slid 1.55% on the week and is leading gold lower. Silver has to hold $19, or the next major support level is way back down at $15.
On the weekly chart, there is a major downtrend line that began at $49.82, and we are right up against it. The downtrend line is very powerful and pushing silver lower now. Until some major catalyst appears, silver will continue lower.
If $19 breaks, I see no reason at all to be in silver. It's dead money, and I like my money to be working for me when I see an opportunity.
Precious metals are not that space.
There are a lot of people heavily invested in the precious metals and not diversified, and they will get hurt. I still take the approach of going where the easy money is, and it's not here. Life's hard enough as it is. I find the easy places to invest.
Let's look at platinum.
Platinum (PPLT) follows gold, it's as simple as that. And so platinum fell 2.83% last week, as gold began to break down.
While I really liked the chart in platinum last week and it wanted to go higher, I always warn that if gold breaks, so will platinum. If we can't hold the 100 day moving average here now, we will head to $1,390. We will cross that bridge when we come to it.
The break of the uptrend channel could have been shorted but I avoided it. We could be in for a major move lower.
What about palladium?
Palladium (PALL) only fell 1.17% on the week but should soon play catchup and fall hard.
Palladium is actually an interesting short to me here. I'd consider a short here with stops at $810, but I think it's inevitable that palladium drops hard. A break of this uptrend line should quickly take us down to $740.
We're still in a dangerous market, but many stocks are showing me tradable lows. The most recent member letter is 41 pages of nice trade setups. You can find out more about what I do for members at www.wizzentrading.com.
At the time of publication, the author held no positions in any of the stocks mentioned.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.