Top Stocks to Watch – Metals Edition

GLD looking oversold down below the yearly value area.

I fully expect the beat down in metals to finally start to subside this week. I think this is an over-extended move down and the insane geopolitical moves will eventually catch up with Gold and Silver. So as a result I will be looking to Long $GLD and $GDX going into this week. My main mode of execution will be through longer dated options, most likely the December and January strikes. The chart above shows GLD well below the yearly value area low and a candlestick pattern similar to that of a blow off bottom. These in addition to the Geo-Political risks make me think Metals will be a go the remainder of this year.

I will know that I am wrong if we push a new low on sustained volume over the course of a few days.

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