wmeubank@ocp.kcmo.com
TRIESTER ON THE MARKETS-OSPREY TRADING
111 Presidential Blvd., Ste 230,
Bala Cynwyd PA
(June 13, 1997) METALS: The second week of June was dull in the silver as it dipped below 4.70. The recent rally is seen as a counter-trend move as the end of January is seasonally positive.
The 465.5 level was touched Thursday by the July COMEX silver contract. The commercials have remained on the short side as the market moved higher last few weeks. The metals are quiet here. The small specs are long against the commercials short position.
Sellers have kept pressure on the market to this point. We did see our projected low price hit at the 468.0 level and saw our 465.0 projected low this week as well. A close on the weekly chart above 480.5 did confirm the current bottom formation. Look to sell strength here as the GDP hit the metals market. This has been neutral. The seasonal pattern is positive for the rest of next month according to CSI, Inc. ( data source) in Boca Raton, Florida, when the trend turns in silver. There were some large spread positions in silver long. We look for a bit more buying in July silver. The 465.5 level was reached briefly on the 13th of June.
The players have added on the short side a bit as the GDP came our Friday. The economic data out of Washington has not effected silver by move than 5 cents and 2 bucks in gold and platinum over the last 10 years. Since we are now neutral, we will stand aside and see no action needed here. Look for more losses in the next several weeks.
Use the 500.0 level for your protective stop. The precious metals sector is becoming a bit more negative here. Gold stocks are rebounding. There is no reason to expect new buying yet. The gold index rallied to 104.60 (XAU.X) and indicates some strength in metals for the short term. The major money is on the sidelines. The Consensus Index of Bullish Market Opinion shows silver at 37%, a little higher reading. Platinum has begun to sell off heavily. We look for some nibbling from bottom fishers, but they will fail as lower levels come. The next timing point comes on the 21st of June.
Look to short and protect your profits with stops at 500.0 basis
March silver. This week we saw a large down move in platinum. This
is the first precious metal to break out to the upside. Watch for
strength in July platinum above 430.0 to lead the way as June
continues.
July Silver--Position: Close 470.8 -8 cents.
David E. Triester
Added to the WWW 06-14-97
Last updated on 06-14-97
Hosted by:
One Crossroads Place
610 West Maple Ave, Suite WWW
Independence, MO 64050
(816) 252-4080
sysop@kcmo.com