First, a note that if you have not seen it, the trade log has a daily chart and some words about GDX. I also posted a weekly chart of GDX at X, and it shows nothing at all new. That being an ongoing correction from 2020 amid what have been poor macro fundamentals.
On to the macro, the 2 Horsemen are breaking upward toward resistance (USD), and still firm (Gold/Silver ratio). USD should get fairly overbought at around 105.90.
The GSR is still in its moderate uptrend and bull biased.
Neither are impulsive yet, but their implications (USD an asset market counterparty and GSR an indicator of market liquidity problems) would come to the fore if they become so.
Speaking personally, I find it hard to get riled up about the inflation data in the news, especially since the Fed has been working behind the scenes to keep liquidity abundant. Reference M2 and Michael Pollaro’s graph included in this post from earlier today.
It feels like machines just taking over and losing their minds. It sucks, because it is so predictable. But this mess has to correct or end sometime, and this looks like an excuse for the former at least (one day wonder or something worse) if not the latter, which would represent the turn in the macro we are looking for (with perhaps the 2 Horsemen leading the way).
