Silicon Image (SIMG) is another Semiconductor company (HD & Mobile HD connectivity) that has been working its way up from a basing pattern. It is another you may have noticed among my holdings (Roth IRA) as I bought it based on the look of the basing pattern, not the breakout above resistance, which just happened yesterday. NFTRH+ focuses on real events, not hope-for events.
Mellanox is an Israel based (US Headquarters in Sunnyvale, CA) Semiconductor company that you may have seen sitting in the brokerage account. I bought it because it was making what looked like its second bull flag at around 41. It has tested my patience, but has been firming lately.
Folks, first I’ll note that hedging the precious metals for me has often proven more aggravating than it was worth. That has been due to the grinding nature of this would-be big picture bottoming process. So I am just letting you know that rather than selling junior and exploration gold positions in the IRA, I am protecting them with JDST with the intent to get through the FOMC tomorrow now that some gains have been made. The biggest protection continues to be the ongoing high cash level as noted in NFTRH 308, which is the best form of risk management (in my opinion) until we get clear of some technical parameters.
Well after getting on the Russia theme this morning, I took a look at Russia’s Google wannabe Yandex and liked the chart. Considering its relative value (though certainly not a value, being an internet stock) has been hammered down due to the recent geopolitical headlines. There is a technical setup here.
Since we routinely cover the emerging markets and also their ratio to the US stock market, I thought I would update some notable changes.
This started out as an NFTRH+ update, but since any stance with the Russian stock market is a longer-term proposition, I decided it was best as a regular update for anyone who might be interested. We’ll keep NFTRH+ on mostly shorter-term scenarios (INTC being an exception), often involving US stocks (and precious metals and commodities equities when they are in setups and when the macro fundamentals indicate a good backdrop).
Sentiment Backdrop
Improving CoT data, public opinion in the dumps, Hulbert’s HGNSI at an extreme bearish level and the contributed articles at Kitco uniformly bearish (or at least acknowledging that gold is done for a while). Getting very bullish, but sentiment is not a very good timer.
A snapshot of current technicals for key markets…
GLD became very bearish with the breakdown from 124. A rise above 123 is needed to even begin to repair this chart.
This one is cut and dry technically. Europe has been bouncing as expected and is apparently overjoyed about some Ukraine-Russia talks. Backing out the hype what we have here is a hard down in an ETF that lost its uptrend and the 50/200 day moving averages. It is now bouncing right back to them.
Folks, being a long standing gold bull on the big picture it is a little weird for me to do this. But NFTRH+ is a service that focuses on technical trading and GLD/Gold are in a bearish setup. Hence, it is noted for those interested.
I have had the HUI 220 to 225 potential hanging out there for quite a while now. Interestingly, today with gold and silver getting hammered that HUI support zone looks far away and out of reach, unless the sector is going to totally break down.
‘+’ updates have thus far been on non-precious metals items because of the extended grind of would-be bottom patterns in play for the last year, and because other items have had more definable and actionable setups. This morning I want to look ahead at the juniors and explorers since the patterns are maturing.