For those interested in the Semiconductor sector (I know of a few subscribers who are) here is the update on four items we have gone over quite a bit in the last couple of months.
The Semiconductor index made a bearish pattern with today’s decline. If it loses the 10 year breakout line (right about at the blue 50 day MA’s), look out Mr. Market.
Updating the HUI symmetry plan, we see that this week’s candle is nearly perfect in its mirror image of the corresponding one from October. So all the miners need to do is finish out the week around current levels and our ‘picture analysis’ lives another week.
Key ETFs offer a technical snapshot each week, but are not comprehensive technical analysis.
GLD is right at the resistance we noted last week. The chart is neutral and would become positive with a rise above resistance (and the moving averages) and a MACD up trigger. Obviously, a failure here would put a bear signal on.
Well, our work of art kept to plan for another day. The two shaded candles are the corresponding candles of interest for this week.
Yesterday HUI did exactly what we asked it to do in order to remain normal to the current plan. It dropped into the 224’s, filled the gap and has not made a lower low to the last green arrow. So it remains in a baby uptrend. I would not get too concerned about reading a rising wedge into a 30 minute chart, but it is inserted regardless to again play Devil’s Advocate.
Well folks, it appears 34 pages were not enough and based on questions received from two subscribers, I thought I would do an add-on update to NFTRH 285.
[edit] Pardon the ads on these posts, but I have finally made the decision that public site readers can put up with some ads at the site, given the amount of information they get. I am not able to disable ads for private posts but as always, all premium updates will be delivered right to your inbox, add free.
The reversal in US markets is coming after a period of under performance by large tech stocks and the momentum darlings like YELP, FB, TSLA, and of course, my personal whipping boys, the 3D Printers.
A lower priority update looking at some constructive charts of non-precious metals items for anyone interested. These might be considered along side some of the semiconductor items we have been following.
The 10 vs. 2 year yield spread dropped, which was an in-day negative not to be given undue weight based on one day, but to be respected none the less. Interestingly, the sector went nowhere (GDX) to down (GDXJ, gold, silver) yesterday as the spread popped. Today spread down, sector up.
We should watch volumes today to see if there is enough conviction to get GDX, GDXJ and high profile individual miners above the moving average clusters they recently fell below. I’ll try to get a review of that after the market closes, assuming today stays positive.
Reminder: ETF updates are presented as a snapshot to current status only. More in depth work is done in NFTRH.
Gold continues to look like it wants to test support at around 1270. A rise above 1300 could put that prospect in the rear view mirror, however.