Today could be an important one for the precious metals. The ‘jobs’ report was as strong as could have been expected, precious metals dropped hard on the knee jerk but have bounced back in pre-market. That reversal might mean something.
We have been noting the Canadian dollar along with several other currencies in NFTRH reports. The Aussie had broken down from support but Canada had clung to support despite a bearish looking pattern. This week it is in danger of losing that support.
Along the same lines as the trades in Palladium and the REE’s, another resources sector that is strategic to a positive economic environment is Uranium. The sector has been dead since Fukushima seemed to coincide with the end of the last commodity cycle in early 2011.
An update for would-be Tax Loss / ‘January Effect’ buyers…
As you may have noticed in the portfolio section of NFTRH 267, REMX was added for a diversified play on the REE sector. This is as much a tax loss and would-be ‘January effect’ play as anything else. Also, if the economy remains strong (ISM just out at a strong 57.3%) I would expect certain strategic commodities to eventually gain a bid in the first half of 2014.
GLD continues its death struggle with the neckline, is in a downtrend and remains on a bear signal.
From the previous update: "If HUI can cross back over the 206.66 October [June] low, I’ll take even more note." Okay, so I am taking note... Here we go again…
I am tinkering around trying to see if I am comfortable with a more active trading opportunity aspect to the NFTRH service. As such, I found a low risk situation…
As we have been noting, the daily chart of HUI has a target of 168, which would be a theoretical Head on an Inverted H&S. Note the word theoretical, because…
GLD continues to fight with the neckline and is on a bear signal.
Very simply, the October low was 211 for HUI. Other measures, like the GDX and GDXJ ETFs have already made lower lows. But today HUI dropped below and is making an attempt to hold 211.
GLD hit support (neckline) yesterday and made a lower low to October’s low. A loss of this neckline would measure to 105 (+/-). GLD is on a bear signal.
GLD is on a bear signal just above critical support. A loss of support in the 120 to 121 area would target roughly 105, based simply on the pattern’s measurement.
The gold-silver ratio continues to rise today. A rising GSR often means strained market liquidity.
