PHYS and PSLV – 3 Jun

The jobs report blew big time and the dollar took it right in the teeth. Of course the future world reserve asset responded like it should, it received a bid. The world is catching on that soon enough the dollar is going straight to Hell. PHYS, the real and 100% allocated gold bullion fund, put in a higher high and closed slightly off at 13.52. Technically a lower low was put in by just a few cents, but I am going to ignore that and say the up trend remains intact. Resistance is at 13.54 and support at the last two swing lows at 13.15. Stochastic remains embedded and all pullbacks are considered buying opportunities. The Bollinger band is the only resistance after 13.54.

The Elder Impulse chart is painting another green bar and indicates long trade exposure.

Silver is doing the industrial metal thing and responding to the idea that the economy is going straight into the crapper. Silly really, the economy has been in the crapper and has never left. PSLV, the real and 100% fully allocated silver bullion fund, closed up a few cents after making a new low on this move. Technically speaking the chart is neutral until a lower high is made on the reaction wave. Support held around 16.20 where both chart support exists along with the 100 day moving average. Resistance is at 18.03, the last swing high. Contrast the declining stochastic with that of gold which is embedded. Also, MACD is hooking over and about to make a bearish cross. I am definitely out of silver as the momentum has abandoned it.

The Elder Impulse chart is showing down side momentum by painting another red bar. Since price is below the 65 day exponential moving average, the red bar is a valid signal to be short PSLV. 15.0 is the next layer of support below the current price level. As long as gold stays strong I do not think silver has any downside potential. Down days in gold will hurt silver big time.

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