{"id":174047,"date":"2020-07-23T19:29:36","date_gmt":"2020-07-23T23:29:36","guid":{"rendered":"https:\/\/www.countingpips.com\/?p=174047"},"modified":"2020-07-23T18:43:38","modified_gmt":"2020-07-23T22:43:38","slug":"precious-metals-spike-and-us-warn-of-danger-part-i","status":"publish","type":"post","link":"https:\/\/www.investmacro.com\/forex\/2020\/07\/precious-metals-spike-and-us-warn-of-danger-part-i\/","title":{"rendered":"Precious Metals Spike and Us Warn Of Danger \u2013 Part I"},"content":{"rendered":"
July 23, 2020<\/div>
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By TheTechnicalTraders<\/u><\/a>\u00a0<\/strong><\/p>\n

– If you have not been paying attention to what is happening in Gold, Silver, and Platinum over the past 3+ days, then read this research article carefully.\u00a0 If you have been paying attention to the move in Precious Metals, then keep reading to learn why this move is so important.\u00a0 Here we go\u2026<\/p>\n

Precious metals have been on the move higher for much of the past 24+ months.\u00a0 Yet, certain forces have attempted to quell the upside advance as global investors adopt a more fearful stance relating to the global economy.\u00a0 As the COVID-19 virus event hit, a big downside washout move took place in Gold and Silver.<\/p>\n

This type of low price rotation is a common pattern as traders are forced to liquidate precious metals positions to cover margin requirements related to open long positions in a deep downside price move.\u00a0 After that washout move completed, we saw precious metals, particularly Gold, rally back to previous price levels while Silver meandered near $16~$17 for a while before breaking higher.<\/p>\n

Our research team has been warning that Silver would become the Super Hero of metals in the near future and recently we issued further research posts to support the upside price move we\u2019ve seen in Silver prior to the current big breakout rally.\u00a0 Read some of our earlier posts here.<\/p>\n

September 24, 2019:<\/strong> IS SILVER ABOUT TO BECOME THE SUPER-HERO OF PRECIOUS METALS?<\/a><\/p>

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May 29, 2020:<\/strong> METALS NEARING CRITICAL MOMENTUM FOR NEW PARABOLIC RALLY<\/a><\/p>\n

July 13, 2020:<\/strong> GOLD & SILVER MEASURED MOVES<\/a><\/p>\n

THE WARNING SHOT HASBEEN FIRED!<\/strong><\/h3>\n

If you understand anything about Precious Metals and how the operate as a hedge against perceived risk in the global markets, then you already understand what I\u2019m about to state\u2026\u00a0 This huge breakout move in Silver and Gold is a massive warning shot fired across the bow for global investors.\u00a0 The idea that the US stock market can continue to climb to frothy highs while COVID-19 erodes the global economy, credit, debt and trade is moronic.\u00a0 Yes, certain stocks are generating decent revenues and returns, but we are talking about a potential global economic contraction of nearly 20% to 30% or more over the next 16+ months.\u00a0 40+ million US workers are currently unemployed and many states are already re-issuing \u201cshutdowns\u201d again because of surges in the COVID-19 virus cases.<\/p>\n

The first warning shot has not been fired for all to see.\u00a0 It was big, loud and easy enough for anyone with more than two brain cells to see.\u00a0 This is how Precious Metals tells us that many global investors don\u2019t believe the current US and global stock market valuations are legitimate.\u00a0 It also pushes a very big concern for COMEX and other exchanges relating to the open short positions in Gold and Silver.<\/p>\n

Short Volumes in Precious Metals have recently climbed from 10.86% of total Daily volumes to 15.29% over the past 7+ trading days.\u00a0 Historically, these levels have peaked near 25% to 26% recently (Source: https:\/\/fintel.io\/ss\/us\/wpm ).\u00a0 We believe the institutional and private short-sellers are getting squeeze by a 50-ton press right now and that COMEX may have a massive shortage of deliverable material if this rally continues. \u00a0Many larger firms will simply want to \u201ctake delivery\u201d of physical metals if they believe this is the start of a massive upside rally.<\/p>\n

Before you continue, be sure to\u00a0opt-in to our free market trend signals<\/strong><\/a>\u00a0<\/em>
\nbefore closing this page, so you don\u2019t miss our next special report!<\/em><\/p>\n

SHORT VOLUME RATIO CHART<\/strong><\/h3>\n

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(Source: https:\/\/fintel.io\/ss\/us\/wpm<\/a> )<\/figcaption><\/figure>\n<\/div>\n

SHORT VOLUME RATIO DATA<\/strong><\/p>\n

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(Source: https:\/\/fintel.io\/ss\/us\/wpm<\/a> )<\/figcaption><\/figure>\n<\/div>\n

We authored a research article<\/strong><\/a> just last week suggesting multiple \u201cmeasured moves\u201d were about to take place in both Gold and Silver ().\u00a0 As of this morning, Silver had reached our predicted measured move target near $22.95 and has started to stall.\u00a0 Gold still has quite a ways to go to reach our target level near $1935.\u00a0 The fact that Silver has already reached the initial measured move target suggests that Silver may contract and setup a new momentum base over the next 3+ days before attempting to move higher.\u00a0 Gold, on the other hand, should continue to rally higher attempting to target the $1935 level while Silver sets up a new base (even though the new base may only last a few days).<\/p>\n

This Daily Silver chart highlights the huge breakout move that recently took place and should send a big warning to all traders and investors throughout the globe \u2013 something big is taking place.\u00a0 Precious metals don\u2019t move like this unless there is massive risk in the markets.\u00a0 The only thing our researchers believe is likely to happen is a surge in new COVID-19 cases pushing many states into shut-downs again and tanking the minor economic recovery process that has just started.\u00a0 We believe the second phase of this process is extended consumer, retail, real estate and massive pension, debt and credit issues for consumers, cities, states and other entities.\u00a0 All of this may only be 2 to 5+ months away from landing on our \u201cdeck\u201d.<\/p>\n

SILVER DAILY CHART<\/strong><\/h3>\n
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The S&P500, Down Industrials, Transportation Index, and SPY have all stalled recently after rotating near major resistance. The NASDAQ has pushed even higher as traders pile into the technology stocks which seem to be bucking the trends.\u00a0 The US Federal Reserve will continue to attempt to support the markets throughout the remainder of 2020 and early into 2021, yet the US Presidential Election and the destruction to consumers may hit the markets before we can blink.\u00a0 Delinquencies are starting to skyrocket<\/a> and the housing market, which by all data measures seems to be rolling along, is starting to fracture.<\/p>\n

We believe skilled technical traders must adopt a very cautious portfolio balance right now or risk a massive blowout event \u2013 similar to what happened in 2008-09.\u00a0 This move in Precious Metals is a huge warning to anyone willing to pay attention.\u00a0 In Part II of this article, we\u2019ll go deeper into detail showing you what is likely to happen in the SPY and Precious Metals markets over the next 6+ months.<\/p>\n

Get our\u00a0Active ETF Swing Trade Signals<\/strong><\/a>\u00a0or if you have any type of retirement account and are looking for signals when to own equities, bonds, or cash, be sure to become a member of my\u00a0Passive Long-Term ETF Investing Signals<\/a><\/strong>\u00a0which we are about to issue a new signal for subscribers.<\/p>\n

Chris Vermeulen
\nChief Market Strategies
\nFounder of Technical Traders Ltd.<\/p>\n

NOTICE: Our free research does not constitute a trade recommendation or solicitation for our readers to take any action regarding this research.\u00a0 It is provided for educational purposes only.\u00a0 Our research team produces these research articles to share information with our followers\/readers in an effort to try to keep you well informed.<\/em><\/p>\n

 <\/p>\n","protected":false},"excerpt":{"rendered":"

By TheTechnicalTraders\u00a0 – If you have not been paying attention to what is happening in Gold, Silver, and Platinum over the past 3+ days, then read this research article carefully.\u00a0 If you have been paying attention to the move in Precious Metals, then keep reading to learn why this move is so important.\u00a0 Here we […]<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[],"tags":[],"class_list":["post-174047","post","type-post","status-publish","format-standard","hentry","no-post-thumbnail"],"_links":{"self":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/174047","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/comments?post=174047"}],"version-history":[{"count":1,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/174047\/revisions"}],"predecessor-version":[{"id":174051,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/posts\/174047\/revisions\/174051"}],"wp:attachment":[{"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/media?parent=174047"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/categories?post=174047"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.investmacro.com\/forex\/wp-json\/wp\/v2\/tags?post=174047"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}