The degree to which gold has been bent out of shape by the drone strike and subsequent war drums informs Thing 2. But every day further from the event smooths the macro out back toward its regular signals I think. Plucky gold is still floating around up there after ticking the new high, but if it starts to lose cabin pressure that could put Thing 2 back in line with the other Things.
Well, Thing 2 has flopped and Things 1 & 3 were only in bounce mode to begin with. So if we are going to keep on with a macro reflation/inflation bounce trade Thing 2 needs to turn back up again. As it stands, I’ve been thinking Q4 2019, and possibly but not necessarily into Q1 2020. Last I looked it’s Q1 2020. Thing 2? You’re on.
The 10yr Treasury yield, industrial metals vs. the gold price and the inflation gauge TIP/TLT have generally been in alignment and so it is notable when they go out of alignment.
Subscribe to NFTRH Premium (monthly at USD $35.00 or a discounted yearly at USD $365.00) for an in-depth weekly market report, interim market updates and NFTRH+ chart and trade setup ideas. You can also keep up to date with actionable public content at NFTRH.com by using the email form on the right sidebar and get even more by joining our free eLetter. Follow via Twitter @NFTRHgt or StockTwits.