NEW YORK (TheStreet) -- We saw a strong week for markets and select stocks as bears backpedaled from their cries for a major downturn.
It still seems that we're in the early stage of a major bull market, and that any corrections should be relatively shallow, like the one we just saw.
We aren't going straight up, though, because markets always need to a breather from time to time.
We had that breather from March until two weeks ago. The correction was the right amount of time, and we are just emerging from it now.
We've had some really good gains the past couple of weeks, and a couple of stocks are breaking out from major, completed patterns, while there are many more stocks that are still completing bases.
It is looking like it will be a busy summer, but a good and profitable one.
As for the precious metals, gold and silver aren't yet even able to show me a dead cat bounce.
It is not looking good for the gold permabulls, but that is their problem.
If you can't adapt and change your views as things change, then there is no way you'll ever make money in the financial markets.
For all I know, the permabulls still believe the earth is square....
Let's move right to the charts.
Gold (GLD) gained 0.15% this past week. I think it's just resting before heading lower once again.
Some people are calling for a bottom already, but I don't see any sign of that at all.
All I see is a small bear flag building between $1,240 and $1,260.
If gold does break above $1,260, the next resistance level is $1,280, but I don't see that happening.
I see the next major move being down to lows at $1,180.
I've talked about my view that the $1,000 area will be tested again this year, and that view did not change this past week.
In the gold market, we need to really see the capitulation that so often marks lows, and we have not come close to that yet.
Silver (SLV) rose 0.96% for the week and is just setting up for lower prices along with gold.
Silver is stuck in the $18.75 to $19.25 range.
As far as I can see, we are still on our way back to $15 and I'm not sure what can change that view.
Strong price action with great volume would do wonders to the upside, but I can't see a reason for that anytime soon.
Platinum (PPLT) was flat for the week, losing only 0.03%.
Platinum can float higher pretty well while gold consolidates recent weakness since it is not the focus of traders for the most part, or you could say, it is not under the same pressure.
Once gold resumes its move lower though, platinum will follow.
The current move could take platinum back up near $1,490, but that would be all the upside I can see coming.
Palladium (PALL) gained 1.19% this past week, but on Friday it broke out higher on a nice increase in volume.
I've talked about palladium being the only real pocket of strength in the precious metals arena, and it is showing just how strong it is now.
Palladium is on the cusp of breaking into new all-time high ground above $862, and that move is coming right now.
Such a nice strong move has lasted from February until now, and we are starting to see this move accelerate to the upside.
As long as we remain above $840, this move is working, and as long as gold doesn't tank right away we should see a move toward $900 over the next few weeks.
Great stuff, and this is a much more conducive chart to my style of trading.
I like strength, or charts that are moving toward the upper right.
Why bother goofing around trying to trade a poorly acting stock when there are stronger charts around?
I don't see any point in being adamant about any specific stock, market or chart. All I want to do is make money and do it in the most stress-free way possible.
Thank you for reading my column. You can find out more about what I do at my Web site WizzenTrading.com.At the time of publication, the author was long physical gold and silver.
This article represents the opinion of a contributor and not necessarily that of TheStreet or its editorial staff.