A two in one update. First for traders only, a look at a stock I am adding for a tax loss, January effect type play; BRCM. Folks, I am not trying to turn sensible people into traders so please disregard this in the likely event that it is not for you.
If this works as hoped, a break of current resistance would target the SMA 200 at around 30.50. This is a trade potentially into January only at this point.
Ref. the earlier update on the precious metals, the 5 year yield continues this morning to rise harder than the 30 year on the very short term. As long as this persists it is a negative divergence to gold and begs patience in evaluating the precious metals prospects. Of course, the jobs report was a negative as well. What was interesting was the precious metals’ reversal upward on what should have been negative news.
HUI 206 is a parameter that must be retaken before anything bullish happens for the gold stocks and the reversal in gold and silver this morning must find follow through. Otherwise, it’s back to square one.