On the other side of the equation from the earlier GDX update, we have the bearish Financials ETF XLF, losing important support today. MACD, RSI and AROON are all down to boot.
Using GDX as a general sector marker, we see the price dropping right down to the former resistance area around 20. That is the first of two notable support areas.
The title is not meant to declare that this time gold stocks are going to exercise the excellent risk vs. reward stance vs. the US stock market. But it is meant to declare that the stimulus for the recent out performance is much healthier than it was last summer, during the last bounce. Recall that was a time when Russia was sending armor into Ukraine … Continue reading GDX vs. SPY; Different This Time
There was a time not so long ago we used a similar monthly chart for crude oil to project a target of 70. That chart was not nearly as bearish as the one for Doctor Copper has been over the last couple of years. Oil sheared right through the target of 70 and kept on going to unthinkable lows. Is the measurement for Copper so … Continue reading Cu @ 1.50?
The 10 to 5 to 2 year spread is indicative of market upset, obviously. Here is the up to the minute view of 30 year vs. 5 year yields, with a nose diving inflation expectations barometer in the lower panel. A rising yield curve can be indicative of inflation expectations rising if long-term yields are rising faster than short-term yields. Or it can be indicative … Continue reading Yield Curve, etc. Today
I make a big deal about India and its Central Banker, Raghuram Rajan. He stands out among global bankers for his willingness to fight inflation and credit bubbles as needed. But I have to tell you that I think I made a mistake using the Stockcharts.com Rupee chart as apparently, it is either an inverted view or a view of USD vs. Rupee. I have … Continue reading Foiled by the Rupee?