Here are 60 minute charts of some widely followed precious metals items, RGLD, SLW, GG and GDX. Each shows what is thus far a normal (if anything is ever normal in this sector) 62% retrace off the bottom. This is provided for your visual reference.
I took profits on AAU and EMXX but hold and am getting beaten on RGLD, SLW, GG and other items with the idea that this is a normal retrace (preferred) or bottom retest (not preferred, but what does the market care?). Also today I added PIRGF from the watch list. I am already getting a little antsy in hoping I didn’t out smart myself by selling AAU. We’ll see. The profit was too fat to ignore.
Also this morning I summoned all of my will (and a few charts) to avoid getting shaken out of bear positions against the stock market because the charts did not indicate that the bear trade was a failed one. Today’s downward reversal is heartening for that trade. Interestingly, the regional bank ETFs have remained positive.
This continues to make me think there is some meat on the bones of a would-be interest rate carry trade as discussed so often lately. If we can just get the blabbing Fed mouthpieces to go on vacation we will see what the markets really want to do.
Unless anything dramatic goes on, I’ll see you on the other side of the 4th of July. Have a good one!