The first 5 headlines on a popular gold website I reviewed this morning are either flat out bullish or scouting for a bottom. The gold bug mind is tattered, but alive and intact. Despite this, I think it is time to get serious about the potential for a bottom in the precious metals complex.
Because these stocks were highlighted as potential trades, I want to keep tabs on them for anyone who is interested.
GLD is right at the line that puts some bull potential back in the picture. What I find most interesting is something that was mentioned last week… gold starting to respond in a positive way despite the dreaded ‘taper’ talk. This reinforces our view that the sooner taper begins, the better (still subject to short term negative reactions depending on a majority of traders’ perceptions).
This morning I initiated positions in AAU and TGD to go with the existing KDX.TO. They were essentially flat when bought and I do not plan to chase anything. The…
As if we needed more complications to our decision making, here is the sentiment graphic as of yesterday’s close.
A two in one update. First for traders only, a look at a stock I am adding for a tax loss, January effect type play; BRCM. Folks, I am not trying to turn sensible people into traders so please disregard this in the likely event that it is not for you.
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…
