GLD is right at the line that puts some bull potential back in the picture. What I find most interesting is something that was mentioned last week… gold starting to respond in a positive way despite the dreaded ‘taper’ talk. This reinforces our view that the sooner taper begins, the better (still subject to short term negative reactions depending on a majority of traders’ perceptions).
GLD is on a bear signal, but trying to trigger for at least a short-term bounce that was mentioned in yesterday’s update.
SLV is on a bear signal, but looking to bounce with a MACD trigger.
GDX is on a bear signal. Most gold stocks have an un-triggered MACD like GDX. The two I bought yesterday, AAU and TGD, actually have MACD similar to SLV and GDX GLD above.
SIL is on a bear signal.
SPY remains on a bull signal but also remains MACD triggered down and over bought. SPY looks vulnerable to further downside.
EZU was hit hard after we noted its wobbly bull status last week. It is still in bull status, but on the verge of going neutral at MA 50’s.
EEM is neutral.
FXI is on a bull signal but forming a messy pattern. NFTRH ended its trade in China on the initial launch.
Bottom Line
It continues to be interesting to see the precious metals get bid on days when it appears that ‘taper’ talk is revving. This is in support of the view that some sort of ‘buy the news’ will happen in gold when they finally do stop rolling over on QE tapering. Also, remember that by my analysis anyway, a tapering of QE will be a potential positive for gold.
Meanwhile, this is technically just a bounce within a bear trend. While I am picking up a few items as either trades or tax loss season acquisitions, the potential for a final washout is still in play until certain upside levels are reclaimed. These would be managed if/as applicable. Most notable is HUI 206 (June low).
I don’t like the stock market. Regardless of whether there is to be a 2nd half of December ramp as expected or not. Regardless of bull speculations I have going, it is time to be aware of the themes of twin manias, the love of stocks and in the mirror, the mania of hatred for gold.
I continue to expect resolution – for the gold bearishness at least – either just before or just after year end.
