Last week we noted that SLV was breaking a trend line. Among that and other bearish indicators, the Silver-Gold ratio had been holding out as a lonely positive indicator for…
SLV could be forming a Hammer candle, which is normally a reversal, which would paint the trend line break as a whipsaw prior to reversal.
Part of my job is to tell you what the charts say and this chart says that SLV is breaking down from a trend line and its 2x inverse, ZSL, is breaking up from one. One is below its 50 day moving averages and the other, above.
Policy, Profits and Propping… that is without a doubt the underlying fundamental support for a massive and growing phase of market speculation that becomes more dangerous with every week that it lurches forward. Once again, the chart that proves this in no uncertain terms:
With the precious metals strong in pre-market, it is helpful to take a current snapshot of the daily technical situation for perspective.
Putting aside the pre-market drop in precious metals, we’ll review the charts as they stood at yesterday’s close.
GLD is neutral, with a bull signal to be determined by MACD going green and the price remaining at or above the 50 day MA’s.
The Key ETF daily charts remain on the same signals as the last update. Precious metals are neutral, US and Euro stock markets are bullish but over bought and commodities and emerging markets are neutral but in potential breakdown mode.
We are in a typical pre-FOMC meat grinder where the precious metals are concerned. I wanted to pass along a few pictures of the current situation, beginning with the important silver-gold ratio (SGR) and HUI-Gold ratio (HGR).
Ever since the current (final wave 5?) leg in the now 4 year, 7 month old US stock bull market generated in November of 2012, NFTRH has tried to make the point that there is no new secular bull market in US stocks. Indeed, there is a maturing cyclical bull market that has another 5 (+/-) months to live if it is to match the two previous cycles. The bubble leader, Russell 2000 does after all have a measured target of 1350 (Kisses Goodbye).
Why do we call the US cyclical stock bull a bubble you ask? Because of this chart (courtesy of SlopeCharts), variations of which NFTRH subscribers have been repeatedly hit over the head with just to make sure that we know what we are dealing with.
GLD is dealing with the SMA 50 after breaking the trend line and triggering MACD. Neutral, pending a climb and hold above the SMA 50 and MACD 0+ (green).
I first became activated to start a website in part because of David Walker, the former top financial cop at the GAO. Something was terribly wrong with America's chronic and…
GLD is MACD trigger up, on a trend line breakout and at the SMA 50. Balance of data points is a neutral signal. Bull signal would come with a couple closes above the SMA 50 and MACD rising to 0+.
A quick update on the status of the weekly view of HUI and its projected ‘W’ or ‘IHS’ bottom as noted in this week’s letter.
But first, to review the daily situation, HUI made its first close above the resistance at 230 (as noted in an update last week by a daily chart). The next important task is to take out the 50 day moving averages, which are currently 234.55 (EMA) and 241.50 (SMA).
