NFTRH Update, Yield Spreads

A simple update noting that the 30 to 5 year Treasury yield spread has dropped again to a fresh low after 2 up days.


So by this measure, caution is still warranted in the precious metals, which have come to a valid technical bottoming area roughly equated to HUI 215-218, GDX 23, GDXJ 35 and silver low-mid 19’s.  Gold has support in the 1270’s.

We had noted that the ratio above would probably thrash around, but it is not reassuring to see it drop so hard after two up days.

This type of short term micro management can cause a mental whipsaw, so from here on I’ll probably make posts like this (yield spread moves and other short term issues) public  for subscribers to consider or tune out as needed.  It could after all, turn up again tomorrow.  Those interested can keep an eye on the public site

We’ll keep most of the real time precious metals technical stuff private, however.  Little has changed there, although they need to hold the parameters noted above or this correction would become abnormal.  And you know how I feel about abnormal.