Well wasn’t yesterday pleasant? That’s sarcasm or irony or what have you. I have had a completely annoying week and indeed, last few weeks. Global CBs are in the bond markets whipsawing our signals day in, day out, president Big Mouth is all over Twitter and the whole tawdry mess has a feel of falseness as it lurches toward the finish line of 2017.
Well, one thing that worked as planned is that gold registered the SMA 200 yesterday. I had been respecting the possibility that it’s little rounding pattern above it would be the low but Monday it broke below the SMA 50 and yesterday it took a little torpedo to hit the 200.
I have no clue whether or not that is the final low. It was a target set when it was in the mid-1300s when gold was at big picture resistance that it simply never was going to get through because of its significance as the gateway to a new bull market. Here’s the monthly chart we used at the time to illustrate.
As for silver, here is the chart from NFTRH 476 and also Sunday’s Gold-Eagle article. Talk about taking things to the limit. Can it break down here? Of course. But did it stop yesterday at the noted key support? Yes.
Do you know what would be best for the sector? It would be for the suddenly laboring stock market and inebriated risk ‘on’ plays to weaken appreciably. If that were to happen it would be time to decide whether the 3 Amigos are going to eventually (this is an extended view, after all) ride to their destinations or abort, instead retiring to their trailers for some fine tequila, final act already in the can.
The view I lean to is that the stock market is not quite done on the upside and that the next precious metals rally will be good, but limited. But that is sure subject to change because with man, machine, quant, casino patron, substance abuser, president Big Mouth, global CBs and Mom & Pop all in the market whipsawing its signals on a daily basis, anything’s possible. It’s like the wild west out there. The Amigos could conceivably get lost in the foothills.
Again I’ll say you try writing every day for 13 years and see if you don’t find the need to have some fun with images like the Amigos, 4 Horsemen, etc. Of course, I don’t take it as far as Kevin Muir, with the difficult to look at article pics he uses. Sheesh, that’s disturbing.
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