Platinum closed down $17.60 on the day to finish the week at $1525.30. The big story of the day was copper, which closed down $.1270 at $2.8195, beneath the critical February support low at $2.8500. That’s bearish, my friends. There is skittishness in the industrial sector based on weak recovery data. The weak recovery won’t go away. What is there on the horizon that looks encouraging? Nada. This is the economic desert we’re heading into. Please prove me wrong.

We would look to get short July copper next week on a technical bounce toward or slightly above the major support level of $2.8500.


This Memorial Day weekend I caught up on some of my financial reading. I’ve never seen so much bearishness. The consensus in the stock market is to look at any rallies as a selling opportunity. Have your finger on the sell button to get into cash and stay there. We are poised for a major downward move in the stock indices. Major meaning where she stops nobody knows. So they say.

Platinum has been thrown to the ground and is waiting to be kicked again. From the April high of $1760 to the May low of $1446 isn’t even a nameable chart pattern like a cascading waterfall. It was just a freefall plunge. I’ll call it a skydiver pattern. It looks eerily like 2008 when Pt skydove from $2250 to $800 in 10 months. Then from January of 2009 to April 2010 it ran up from $800 to $1760 with very few supportive corrections or consolidations along the way. That’s why if serious selling takes hold it could be bombs away until the $1036 to $1086 levels.

I hate to say it but we won’t be buyers until prices consolidate firmly or go significantly higher, say above $1720 or at least above $1660. Like they say buy on the way up and sell on the way down and right now Pt is on the way down.

Stay on the sidelines unless you’re brave enough to go short.

July platinum:  $1,525.30, down $17.60; Range $1,509.50-$1,553.90

September palladium:  $431, down $19.80; Range $426.50-$454

July copper:  2.8195, down $.1270; Range $ 2.8125-$ 2.9920

August gold:  $1,217.70, up $7.70; Range $1,198.10-$1,221.70

July silver: $17.299, down 63.2 cents; Range $17.285-$18.035