Turning to one of our leaders, I wanted to show the Russell 2000 from weekly and daily views.
A snapshot of current technicals…
GLD climbed above the June low but is still considered at resistance below the SMA 50. Also note GLD remains in a down trend (series of lower highs and lower lows) which would not be broken until a rise above the July high around 129.
A snapshot on gold…
We noted the May/June low as the key resistance point for gold and today it is popping above that point, with a 50+ (but not over bought) RSI. Also of note is the declining SMA 50 right above that spot. If gold can hold above here to close the week, it would be positive sign for yellow metal.
I have found it interesting that gold has maintained its firmness on its October bounce, through stock market weakness and strength as well as US dollar weakness and strength.
Silver has been much more iffy and unlike gold, resides below massive long-term resistance. This is in line with a more bearish macro backdrop that would see the Gold-Silver ratio continue to rise, potentially with a resumption in USD as well, after its short-term correction.
DOW has reached initial resistance with bounce target #1 about 100 points higher.
This is probably of more concern to traders, so it could be considered an NFTRH+ update as well for people who want to plot levels to take a shot shorting. But for everyone’s reference I want to put up another view of the upside retrace potentials using Fibonacci retracement levels, now that the bounce is confirmed to be in progress and we can gauge an actual low to measure from.
Allow me to share with you some crude artwork to illustrate the rough path most likely for US stock markets in the coming weeks through year end. I thought a simple cartoon might suit our needs nicely. The black lines are what have been, up to today. The blue is how this type of correction might typically unfold.
In a volatile environment perhaps a good way for many people to go (other than the #1 option, cash) is trading the indicators and indexes, a opposed to individual stocks. In that regard, I think that long-term T bonds are getting over done on the upside (R.I.P. ‘Great Rotation’).
Usually interim updates are all business, talking about changes in indicators or technical analysis or parameters. Well, this market is getting beyond the black and white and bears some discussion, from one market participant to another. So pretending that you casually asked me ‘hey pal, what do you think about the markets?’…
A snapshot of key ETF’s…
GLD has bounced a good way toward the key resistance noted previously, which is the June low. This level is a very key decision point, because gold remains bearish below that level.
As crude oil continues down today we are presented with a perfect opportunity to review why gold mining fundamentals can IMPROVE in a rising US dollar atmosphere. So many people run the equation through their heads: USD Strong = Run Away!
A return to a previous NFTRH+ highlight for base metals enthusiasts for simple little trade.