From the Trade Log on June 5: I took my first short today, against the US Materials sector (XLB) as it rises hysterically to near the previous highs and fills a gap. I am leaning ‘reflation… not yet’ while still holding banks (KRE), commodities (DBC), etc. Profits were already taken on KRE, DBC and the other reflation items before today. So XLB is my only … Continue reading Materials (XLB) Short Working Well
I had the Stooges shtick going back in April as the Gold/Silver ratio (GSR) threatened to turn (up) but instead the reflation trades got a big tail wind and silver began greatly out performing gold. The GSR broke down. But all that did was serve to drive it to a logical termination point similar to the Gold/SPX ratio shown in the previous post. Here’s the … Continue reading Gold/Silver Ratio: Slowly I Turn
Not only did the Gold/Silver ratio recently hit a major support zone* (as shown in NFTRH 605) during this market sentiment rally, but so too did the Gold/SPX ratio drop to a level that would be a strong candidate to end the pullback (and the macro party) as Gold/SPX hit the up trending SMA 200 before making a big pop today. This is not macro … Continue reading Gold/SPX Ratio Bouncing From a Logical Point
I am finally getting myself oriented after being on the road yesterday and completely missing the FOMC nothingburger of future inflationary policy. The broad markets are using COVID-19 resurgence fears and Powell’s own words about how bad the economy is to throw a fit. Of course, risk had been high for so long this was inevitable as some point. My concern here, however, is how … Continue reading NFTRH+; HUI & SPX
As usual, the counter-cyclical Amigo, the swinger Amigo and the cyclical Amigo tell their macro stories. Gold (counter-cyclical), which would benefit from a risk ‘off’ lurch by casino patrons, has held the consolidation and taken back the SMA 50. As such, the target of 1940 lives to fight another day. As I’ve mentioned before, the negative RSI divergence can be looked at as just that, … Continue reading 3 Metallic Amigos
