Well, our work of art kept to plan for another day. The two shaded candles are the corresponding candles of interest for this week.
Yesterday HUI did exactly what we asked it to do in order to remain normal to the current plan. It dropped into the 224’s, filled the gap and has not made a lower low to the last green arrow. So it remains in a baby uptrend. I would not get too concerned about reading a rising wedge into a 30 minute chart, but it is inserted regardless to again play Devil’s Advocate.
Well folks, it appears 34 pages were not enough and based on questions received from two subscribers, I thought I would do an add-on update to NFTRH 285.
[edit] Pardon the ads on these posts, but I have finally made the decision that public site readers can put up with some ads at the site, given the amount of information they get. I am not able to disable ads for private posts but as always, all premium updates will be delivered right to your inbox, add free.
The reversal in US markets is coming after a period of under performance by large tech stocks and the momentum darlings like YELP, FB, TSLA, and of course, my personal whipping boys, the 3D Printers.
A lower priority update looking at some constructive charts of non-precious metals items for anyone interested. These might be considered along side some of the semiconductor items we have been following.
The 10 vs. 2 year yield spread dropped, which was an in-day negative not to be given undue weight based on one day, but to be respected none the less. Interestingly, the sector went nowhere (GDX) to down (GDXJ, gold, silver) yesterday as the spread popped. Today spread down, sector up.
We should watch volumes today to see if there is enough conviction to get GDX, GDXJ and high profile individual miners above the moving average clusters they recently fell below. I’ll try to get a review of that after the market closes, assuming today stays positive.
A ‘White Paper’ article on contrary indicators in the emotion packed gold sector. Make it them work for, not against you.
The gold sector is peopled by a high concentration of contrary indicators because it is a relatively (to the vast world of equities and bonds) small market that offers refuge from some of the damaging aspects of the spectrum of investment products that are supported by the manipulation of interest rates and printed (and digitally created) money supplies. Thus, gold has moral high ground if an asset can be thought to have morality.
Reminder: ETF updates are presented as a snapshot to current status only. More in depth work is done in NFTRH.
Gold continues to look like it wants to test support at around 1270. A rise above 1300 could put that prospect in the rear view mirror, however.
A simple update noting that the 30 to 5 year Treasury yield spread has dropped again to a fresh low after 2 up days.
With reference to an earlier public post showing the EEM breakout today, you may recall that I use EMF for Emerging Market investment and TDF for China/Asia. Both are managed by Marc Mobius of Templeton.
I am cooling my heels at the allergist's office. I almost bid goodbye to this world a couple times due to Yellow Jacket stings and now am a bee venom…
There is a lot of talk now about a flattening of the yield curve. This talk has been among the most intense right here at the website you are reading at this moment. A flattening curve is commonly viewed as bad for gold, and according to Mark Hulbert, is an indicator of a coming recession.
Why you should care about the yield curve
But is the curve really flattening or is this all hype based on Janet Yellen’s press conference comments? Here is a chart the likes of which we have been using in NFTRH for many months now, the 30 year vs. the 5 year yield.
MarketWatch shows a similar chart in its article…