NFTRH+; the leader holds firm

We looked at the long-term support for silver in this morning’s update. We also reviewed its still intact leadership to gold.

Daily silver is hanging tough at the SMA 50 and if its relative strength to gold is foretelling a rally in the precious metals (as well as other areas) its first objective is 20.80. After that, if a relief rally gets going and has some legs, the SMA 200 is declining into a very thick resistance area around 22 (yes, that resistance area that we watched previously as silver failed).

Personally, I don’t think this is THE bull move if a post-FOMC bounce/rally gets going. But that view will depend on information as yet unknown. For now, if silver holds the SMA 50 and just as importantly, keeps out-performing gold, then that would indicate relief in the near-term as the hawking Fed rides off into the sunset.

4 thoughts on “NFTRH+; the leader holds firm

  1. Also look @ SMH outperforming today. Put call ratio prior to this fed meeting was pretty high…. But I agree, it is temporary relief.

    1. Well, they are trying to make us think it’s VERY temporary relief by turning everything down into the close. But SPX filled a gap today and I wonder if it wanted to get that out of the way before thinking about a contrary bounce. I’d actually rather it break down ASAP to get the macro where I want it. But I’m prepared for an interim bounce.

  2. Somewhat related, Gary. Can you please look at monthly TIP chart. Looks like area of strong support going back to 2013, but also like a falling knife with a jet engine attached to it.

    1. I assume you are looking at a TIP chart with the dividends removed from the calculation. That chart is stabbing support from 2004-2009. TIP including dividends is well above support and bullish on the big picture. But that jet engine sure is heavy. :-)

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