As crude oil continues down today we are presented with a perfect opportunity to review why gold mining fundamentals can IMPROVE in a rising US dollar atmosphere. So many people run the equation through their heads: USD Strong = Run Away!
A return to a previous NFTRH+ highlight for base metals enthusiasts for simple little trade.
Now that the Dow has joined nearly everything else in marking a lower low to the August low and the sentiment backdrop is getting very bearish (per October’s reputation), a reversal can come at any time. Yesterday, as the market was positive we NFTRH+’d* a bear trade setup on QQQ, but the market reversed downward again. The parameters in that update still apply on any coming bounce.
Today may or may not be the bounce that was expected off of the bearish developments last week. If so, or in the event such a bounce materializes this week I wanted to put some parameters down on the QQQ.
Reference back to January of 2013. In an NFTRH update we talked about a contact of mine who supplies the equipment sector of the Semiconductor industry, who advised that the industry was on a “ramp up”. The equipment companies are the likes of AMAT, MKSI and LRCX who gear up for Semiconductor Fab cycles.
From yesterday’s update…
[edit] Please accept my apologies. Futures are down, but not nearly as drastically as what was earlier noted. MarketWatch showed indexes down around 2.5% but Bloomberg had them at around -.5%. A check of the actual prices shows the Bloomberg data is correct. So take everything below as a future game plan in case the August lows are breached.
The news driven short covering rally yesterday was impressive and now momo’s are being punished. Makes sense.
The title's quote is one of many eminently quotable messages I had the pleasure of receiving over a few years of contact with a late, great and a very interesting…
Well, today the expected reversal in USD is firming up as the big down day on Monday gets some follow through. There is nothing much to add to all of…
A technical snapshot of key ETF’s…
GLD has bounced from critical support (equiv. of gold 1180). MACD triggered up is positive.
Well, here came the short covering rally in the precious metals. By calling it that I don’t mean that it cannot turn into something more, but today was most assuredly driven by short covering as the US dollar unwound some of its speculative sponsorship. One can assume that large speculators took it on the chin on both ends, in the USD and in gold/silver as the Commercial traders had been aligned increasingly bearish and bullish, respectively.
The following is an email from subscriber Francisco. I thought I would use it as a basis for an update on gold and the miners today (with his permission). I’ve numbered the points being addressed from his email…
Updating the charts we have used to gauge October’s little bearish ripple and projected bounce back.
With its position well below the ‘205 parameter’, I am not trying to look for positives because that was below our tolerance to begin with. When the Ukraine hype failed as expected our targets were 220, 210 and finally 205 respectively to keep things in order. They are all history.