Great live coverage is being played on Al Jazeera .
Some links are here: BBC, CNN, Al-Jazeera, CBC
I have always been an advocate of reading the same article in at least 2 other main stream news companies that are on all sides of any conflict. Form your own opinions of the true nature of any situation or conflict as unbiased as you can.
Before talking about the Gold / Silver mining opportunities, a look at a major currency pair will help put global pressures into context.
What happens when the world starts to get the jitters? USD gets a bid, which has been the expectation for a while. This spells trouble for the EuroZone. On the Egyptian turbulence, the EURUSD pair collapse and is currently trying to figure out "what is next?" It is my expectation that a deeper correction will occur, possibly the 1.35 area before major support comes into the market. However, depending on world events markets in general are going to be volatile.
AUDJPY had the bottom fall out when markets opened at 6:00 pm Sunday EST. Since then there has been a bounce, with the implied implication on further downside pressure on the pair. The next logical support area I suspect is the 80.00 level, 1.72% from its current level.
Am I certain the silver market has bottomed? Nope.... However, looking at some technicals, it does make sense to play this short term bounce / beginning of the next rally. Looking at the massive rally from the end of August until the beginning of January we finally have had a much needed pullback. It still is my expectation that the bounce we are going to see is actually a continuation of the current correction and expect prices to range as long as world events remain relatively calm. The price has retraced 32.8% from the highs which coincided with a strong reversal on sightly higher volume.
The way I have advocated to play gold and silver are small cap mining companies that can easily have 5-10% pops when the conditions are right. Well.... Regardless if silver lasts, if there is an up day in silver on monday, Silver mining companies are poised for a day of solid gains.
Previous post I mentioned I have a position in AXR on the TSX, at 6.60, with its close at 6.67.
Another trade I am planning is on GPR, even though FVI I like as well.
The stock has had an amazing rally, and has recently come off its highs, a 50% retracement was completed 4 trading days ago. This low also coincided with the Bollinger bands which have now started to curl back upwards. As the Slow stoch shows there is plenty of room for this stock to rally without encountering overbought pressure. The major resistance will come in at the 20 and 50 day MA, but if the price action can get above them, a retest of the 2.75-2.80 level is not out of the question. I am thinking of a Buy-Stop at 2.17 which I expect will be a strong level of support in the future.
Lastly, Nasdaq down 2.48% on Friday. This closed significantly lower than the 20 MA, which means the next logical support area will be 2655ish. If this selling pressure continues (on very strong volume), expect more days like Friday over the next 2-3 weeks.
Note: VIX (Volatility / Fear index) popped 20% which confirms this strong move south in the Nasdaq and other markets around the world.
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