They are making nice-nice. The US and China, with a side order of Europe.
The stock market mini-crash came at the hands of the tariff/trade war and of course the recovery has come – and could be entering a blow off phase against – the happy aftermath. Look at those two jamokes, presenting a “happily ever after” face to the world.
Well, at least we can get this over with now. It was in the bag the whole time. Trump tore things apart so he could put them back together again. But beneath the surface, the economy will do what it will do, and what it has been doing is slowly eroding around the edges. Take a look at the housing markets, for one.
But it is still happy time, for however long it lasts, as NDX hit new highs yesterday and SPX is due for the same.
Gold is not amused. Indeed, it is breaking down from the daily SMA 50 and could explore the 3100-3200 area if the joy elsewhere keeps up. This is normal and the logical extension of the fading momentum we noted for gold in NFTRH 868.
I’ll sit with my gold, no problem, as usual. But the question now is whether the gold miners will tag along with the SGR trades (nominal silver is making a nasty little pattern this morning), assuming they keep going? That is what happened in 2005-2008. But I believe we are on a much more compact time frame today.
Meanwhile, HUI/Gold (GLD) is fully intact and HUI/SPX is wobbling and not looking too good.
The thing is, with the broad markets rallying as they have, now including the commodity complex, the gold miners are no longer unique and should not be obsessed upon as some gold bugs tend to do to the exclusion of everything else. It’s the “everything else” that is working lately.
With HUI 500 within hailing distance I am going to continue to have patience but also growing caution on the sector and the whole ball of macro wax as well. Happy Trader and the two happy goons pictured above the headline of the opening graphic instruct so.
GDX popped to fill the upper gap yesterday and dropped to the SMA 50 this morning. Normal. Any lower? Abnormal… to my tolerance at least.
