The original intent was as noted here at the site last week, to allow some room to build a bearish case for 3D Systems (DDD). But even with 30 pages that did not happen. Maybe I’ll find time to do it as a public post.
What did happen was a well rounded look at the precious metals along with the usual markets. Also this somehow got into the ‘Wrap Up’ segment…
Today there is some turbulence. Good, an extended rally scenario would not want to see the sector fly up to excessively over bought levels all in one big gulp. HUI is only moderately over bought.
By breaking the consolidation handle in the first half of this week HUI has now established the 220 +/- area as the first key support level, replacing the former 210 +/-. That’s progress folks and if (there is surely no guarantee) this support is to be tested the ‘grinding bottom’ scenario would be well in place.
HUI is bullish and until such time as it takes out an important support level (ref: 210 and now 220), pullbacks are healthy. The above is provided as reference for profit takers, would-be buyers, hedgers and regular old holders.
One is a leadership breakout play in the form of quality royalty company Franco Nevada (FNV) noted for its imminent attempt at the trend line in an NFTRH Update early last week…
And the other is a bottoming formation in Agnico Eagle (AEM), which was noted in an Update on January 17.
The following is the opening segment of this week’s Notes From the Rabbit Hole, NFTRH 276:
Somewhere along the road from the 2000 bottom in gold stocks to the 2008 flame out of inflationary hysteria, the gold stock sector went from counter cyclical first mover to ‘inflation trade’ also ran. Gold stocks put in a secular bear market bottom in 2000 just as the US and many global economies were topping out.
Then came the era that NFTRH has labeled ‘Inflation onDemand’ (IoD). The economy was successfully* inflated by Alan Greenspan early in the decade as easy monetary policy fomented an epic credit bubble, which took over and did the heavy lifting for a cyclical bull market and buoyant economy that terminated hard in 2007/2008.
During this time of IoD ‘inflation bulls’ and commodity bulls who had all the answers for a newly inflation-phobic public emerged and took center stage. Misperceptions were formed, cemented and driven home. Nowhere were the misperceptions more intensely and dangerously embedded than the gold stock sector, which at its core is different than most commodity sectors and indeed, most stock sectors. Introducing another one of our ‘busy’ charts to illustrate…
Okay, article over… the chart says it all. No more words necessary!
The chart is a confusing jumble you say? Okay then, let’s take it point by point.
This one slims down to 31 pages of quality financial market analysis. These reports, which should be between 15-25 pages normally, are what they need to be for me to get enough data points analyzed given the current situation where 2014′s financial markets are grinding toward our expected changes.
There is no ‘set it and forget it’ right now. I am in full geek mode. Later will come the relatively fun part, like making money on new trends.
NFTRH 276 out now…