Time to take profits on a couple of over bought items. Not to say they don’t go higher. Just to say that I am satisfied for now. Not going to be greedy.
NFTRH has some resistance parameters on the precious metals and I want to make sure I am taking some profits (on the above and on anything else that suits my needs) as we approach. Let all the guys who were bearish until last week play bull hero for now.
Royal Gold (RGLD) was conspicuously strong yesterday as the gold stock sector sagged. It broke upward from consolidation (that worked off an over bought RSI) on volume. This, along with Franco Nevada (another royalty company) are among the cream of the gold sector, in my opinion.
PS: I understand the site is still acting cranky. Thank you for bearing with it. Usually a refresh or two brings it back if
the DB connection is lost you get a 500 server error.
It can be annoying to watch the precious metals sector suck in the momo’s and flush them right back out again, as was the case with Royal Gold and Silver Wheaton on the war hype reversal day. You want to try to be a sensible investor but when the froth gets too thick you’ve just got to take profits and/or get defensive.
Leading up to that key reversal day (yellow ovals) people couldn’t wait to get in and buy the hype. And now, the inevitable reverse momo to the downside.
I try to tune out people telling me why the precious metals are bullish if they do not include real macro fundamental analysis to support their claims. Charts are just charts; road maps. By macro analysis I don’t mean Indian wedding season, China demand and of course I don’t mean Syria war hype.
Absent the macro making sense, that is just empty cheer leading. But if the macro makes sense, what is happening now will be a great buying opportunity. So I’m gonna do the work in preparation. You should too.
 And right on cue here comes MarketWatch with the punch [head] line…
Gold ends down 1.6% as Syria fears recede
Ha ha ha…
I’ve seen worse correlations than the weekly charts of Google and Royal Gold. GOOG is running ahead by a few weeks in this correlation.