In a market overrun with whipsaws and failed moves, our gold mining trades are holding their breakouts and reaching our initial targets. Not many market areas can make that claim.
And when you consider they’re outperforming the S&P 500 and the physical metals, it’s hard not to like these names.
Especially as gold and silver run into logical levels of resistance…
Despite another CPI report and the latest job numbers reflecting easing inflationary pressure, markets are a mess!
Indecision and uncertainty are running high. Investors simply aren't able to get a read on the economy and the Fed's next step.
I don’t blame them.
If you’re focusing on the Fed comments du jour or lagging economic data that will likely be revised in the future, confusion and pain are the higher probability outcomes.
Everyone is talking about an imminent economic downturn and the next stock market crash.
You hear it on the news and in the streets – talk of the banking crisis, the Fed, inflation, and China pervades the narrative. Even my doctor assured me the world is headed for dark times during a routine appointment earlier this week.
Bearish sentiment is obviously alive and well.
But, as a chartist, I prefer to visualize these rumblings...
Trendless price action remains the way right now for currency markets.
Yes, some of our bearish dollar trades have triggered and are trending. But most have not.
It doesn’t mean they won’t, of course. But it would be irresponsible not to consider potential outcomes that conflict with my bearish USD thesis…
If the dollar rips, what USD dollar pair would I use to express a bullish outlook?
The answer: the South African rand.
Check out the weekly chart of the USD/ZAR pair:
The dollar has been in a strong uptrend versus the rand for more than a decade. It’s been one base breakout after another, leading to the USD/ZAR challenging its all-time highs last month.
I'm a big fan of Phil's work. He's the Chief Market Strategist at Blue Line Futures and a market veteran with more than 20 years of experience trading futures and forex.
Today, Phil shares with us his technical perspective on precious metals and discusses key fundamental drivers at play right now.
Gold priced in USD has finally joined other global currencies, closing last week at an all-time high. Silver, the high-beta play, is outperforming its more reserved cousin (gold). And gold mining stocks are breaking out.
Many of our trade ideas over the past few weeks are working. I believe this trend has just begun and could last for months – or even quarters.
Precious metals and crude oil stole the show this week.
Crude oil reclaimed its prior-cycle peak, gapping higher on the Sunday open, while gold and silver posted fresh highs.
I’ll have more on those shiny metals Monday in the weekly Gold Rush report.
Today, I want to bring your attention to a commodity that often escapes the headlines – palladium – and why I think a significant bottom could be in place for this diverse metal.
I say “diverse” because palladium has multiple use-cases, from catalytic converters to fine jewelry.
Around ASC we jokingly refer to palladium as “the Notre Dame of precious metals” because it’s in its own conference.
Categorizations aside, here are three reasons I believe palladium is a strong buy…
Commercial Positioning
Commercial hedges hold their largest net-long position in history!
The 30-, 10-, and 5-year contracts are trading above our risk levels. And the bond ETFs we covered a couple of weeks ago are also flashing buy signals.
The bond market is sending a well-advertised message to all investors…
It’s time to buy bonds.
Let's review one of the most liquid treasury ETFs, $TLT.
Zooming out on the weekly chart of the Treasury bond ETF TLT…
We have a potential failed breakdown below the former 2014 lows, followed by a tight, multi-month consolidation.
