GLD continues its death struggle with the neckline, is in a downtrend and remains on a bear signal.
We have been working a theme lately about the mania going on in US stocks (some valuations are not overly manic but policy sure is) and also the one going on in the mirror (a fun house mirror at that) in the ugly precious metals sector.
We are in a time of utter reverence for great and powerful Oz-like people doing not so great things to the rates of interest that would be paid to savers and prudent people (Zero Interest Rate Policy or ZIRP), and doing wonderful things for leverage (substance) users, speculators and asset owners (MBS and long-term T bond buying).
From the previous update: “If HUI can cross back over the 206.66 October [June] low, I’ll take even more note.” Okay, so I am taking note… Here we go again with another in-day reversal. I continue to hammer on that any real rally will not care if positions were taken at 210 or above 230, where the 50 day averages reside. So please, if you … Continue reading NFTRH Update, HUI Groundhog Day
I am tinkering around trying to see if I am comfortable with a more active trading opportunity aspect to the NFTRH service. As such, I found a low risk situation in Palladium, which is an economically strategic mineral. In other words, in my opinion it is a commodity posing as a semi-precious metal. For anyone who might be interested, PALL is working its way toward … Continue reading NFTRH Update, Palladium Opportunity & a Note on Precious Metals
As we have been noting, the daily chart of HUI has a target of 168, which would be a theoretical Head on an Inverted H&S. Note the word theoretical, because the weekly chart still holds the nasty 100(ish) target from the 2010 – 2012 topping pattern and now a new one based on today’s lower low to the June low, which is to around 130. … Continue reading NFTRH Update, HUI @ New Lows & Targets
GLD continues to fight with the neckline and is on a bear signal.
Very simply, the October low was 211 for HUI. Other measures, like the GDX and GDXJ ETFs have already made lower lows. But today HUI dropped below and is making an attempt to hold 211.
GLD hit support (neckline) yesterday and made a lower low to October’s low. A loss of this neckline would measure to 105 (+/-). GLD is on a bear signal.
GLD is on a bear signal just above critical support. A loss of support in the 120 to 121 area would target roughly 105, based simply on the pattern’s measurement.
The gold-silver ratio continues to rise today. A rising GSR often means strained market liquidity.
Well the theme is that gold is opposite to the bull mania and ‘risk on’ environment so well crafted by policy making. The title says “fun house mirror” because those things distort sizes of images.
The break above the 50 period MA’s on the HUI 60 min. chart with a corresponding break below in DUST, is the first positive technical inkling for a potential bounce or rally in the gold stocks. We cannot say for sure that this will hold and manifest in a rally, but we can say for sure that this is the first time HUI has gotten … Continue reading NFTRH Update, HUI & DUST Hourly (for Short-termers)
HUI continues below the 50 day MA’s but has been sneaky in its refusal to break down despite the pressure on the metals over the last few days.
GLD is on a daily bear signal below the MA 50’s and MACD going red. At a potential S/T support area.