Transcription:
Hey, Dan Murphy here and before we get into the serious business of trading, I like to have fun and breakup the monotony here and yes, this is a picture of me, horribly taken I might add, and yes I am giving the raspberry there and the only thing redeeming about this picture is that background over there. This is the view from our new office in Newport Beach and we’re just moving a lot of stuff in there.
I won’t be in the office too much but that is where the newest addition to the team is going to be working and that is Jenna. I just wanted to give you a quick heads up and a quick welcome to Jenna who is going to be helping out a lot in the everyday operations of the site. Anyway, let’s go ahead and talk about gold today. Gold had a tremendous run up and recently has, basically, been in a bear market.
You can really tell if you're a silver trader or one of those buy and hold silver types. I definitely see a lot of the fundamental reasons to own gold and silver. I'm a precious metals bull through and through but taking a 50% hair cut is no fun when it comes to just doing a buy and hold like this. But, my heads up real quick, we’ve already gone through a huge draw down in gold and silver. So you might expect me to be talking about buying well in the video that was a few weeks ago I got lucky because we were buying at the bottom on the open and made a couple of good trades in there.
We are out right now because there's this 20,000 pound elephant in the room with us right now that is glaring its ugly head and I'm just going to do an overlay on this chart. Let’s just go back to gold and silver as there are more traders but I want to go ahead and overlay this real quick with, let’s just look at any ol’ gold index. This is just glaring its head here. Let me annotate the chart, we have a tremendous rally right there. What happened to gold recently? Our gold stocks rather.
We are definitely seeing a really big divergence. I want to get into a lot of divergence stuff later. I was saving it for when I’m going to be doing the video in the new office, actually but what I want to point it out real quick when I end this video either one of two things need to happen. You really need to see gold stocks rally here and try to catch up with gold or gold is simply going to fall again and it could be a pretty decent size one.
I've seen this happen before especially in silver, we’ve had this divergence that I was looking at, silver kept going up and up and one of my trading models said hold on we’re going to get out here and this thing kept on going and going and then that is when it just crashed. I’ll show you on the chart here actually. Let’s go SLV again. I wanted to illustrate with my little handy pen but this is what I'm talking about. It kept on going up and up and up, it’s not like we were short or anything but it was the same for that whole time, hey man there's something going on here.
We’re seeing divergences between silver and some of the silver and gold stocks and, sure enough, that’s when it just took a big belly flop. So I'm just going to go ahead and avoid precious metals for the moment. I'm sure I'm going to be getting back in eventually here, I am a trader. That is the heads up I wanted to give you and, by the way if you could do me a favor, below this video is a little like button for Facebook. Do me a favor and click on that if you are learning or just getting a kick out of these videos. Thanks a lot and I’ll talk to you some time soon.
Dan, signing out.