Steve Penny: The Bottom is in for Metals
Tom welcomes back Steve Penny. Steve is a full-time trader specializing in silver, gold, and uranium.
Steve feels the US dollar remains in the classic definition of a downtrend, and the current pattern is similar to a previous failed breakout. Both the fundamentals and technicals appear bearish over the intermediate to long term.
Silver remains in an uptrend, and we have been bouncing upwards off the 50-day moving average. Once we overcome resistance, we will be off to the races in silver.
Steve likes to trade a small percentage of his portfolio, and how he plans his trades weekly. This approach allows him to reduce emotion and helps make him a better trader.
The Gold-Silver Ratio reaching 120 was an unprecedented event, and he believes we could see 20 to 1 or higher near the end of this bull market. Silver miners are still undervalued compared to everything else, and over the long term, he expects them to outperform wildly.
He discusses the long-term patterns for gold, and even if we have a pullback, we are still solidly in a bull trend.
He is very bullish on platinum because its valuations recently reach historic levels relative to gold. It’s quite likely we will outperform to the upside and perhaps even over correct.
Lastly, Steve discusses why uranium is a growth industry and why the price must rise to incentivize new production. It’s such a small market that large investment firms entering will have an outsized effect on uranium shares.
Time Stamp References:
0:00 – Intro
0:45 – US Dollar – DXY Chart
3:03 – Silver Chart
4:51 – Planning Your Trades
6:02 – Cameco Chart
8:25 – SILJ and 200 DMA
10:48 – Silver Supply Issues
12:09 – Gold To Silver Ratio
15:12 – SILJ vs. GDXJ
16:10 – Manipulation
20:26 – First Majestic Chart
21:43 – Golds 10 Year Chart
24:49 – Platinum
26:33 – Uranium Thoughts
31:11 – Wrap Up
Talking Points From This Episode
- Outlook for The US Dollar.
- Silver, Gold, Platinum and current trends.
- Why the uranium price must rise.
Steve Penny is a full-time trader and investor specializing in the silver, gold, and uranium markets. Mr. Penny shares his unique insights and chart-based trading setups on his popular Twitter feed. Mr. Penny served as an Air Force pilot for 15 years and now flies for the airlines. Steve has launched a free weekly chart pack report, which is available on his website.