Gold long continued
Updated
Looks like gold wants to correct a bit from the fresh high we just made for 2017.
This could possibly tag the 1230/40 area before continuing upwards for a clear break of the 6-year trend-line, which is still giving us some problems.
Gold has a lot going for it, as the dollar continues to make lower lows (made a new 2017 low this week), while continuing to make lower highs.
GDP numbers continue to be revised down as we continue to get weaker and weaker data from the U.S.
I am by no means saying to wait until 1230/40 area to go long, or add longs. I'm just saying it's an area that we might tag within the near future. We could possibly bounce beginning early next week, and continue this 2017 bull rally after the FOMC, without even reaching that level.
Miners have bounced well during this run, which was long overdue.
We're also far too late to have a massive drop into FOMC, and I think with all the weak data coming out recently, the market knows the Fed is in a tight spot when it comes to raising (hence the fall of the 10Y).
It's also humorous that people who have been short from the 1240-50-60 areas before the rally to the mid 1290's, are now claiming victory even though they were just $50 underwater and are finally starting to break-even on this healthy gold pullback. A broken clock is right twice a day.
Good luck.
This could possibly tag the 1230/40 area before continuing upwards for a clear break of the 6-year trend-line, which is still giving us some problems.
Gold has a lot going for it, as the dollar continues to make lower lows (made a new 2017 low this week), while continuing to make lower highs.
GDP numbers continue to be revised down as we continue to get weaker and weaker data from the U.S.
I am by no means saying to wait until 1230/40 area to go long, or add longs. I'm just saying it's an area that we might tag within the near future. We could possibly bounce beginning early next week, and continue this 2017 bull rally after the FOMC, without even reaching that level.
Miners have bounced well during this run, which was long overdue.
We're also far too late to have a massive drop into FOMC, and I think with all the weak data coming out recently, the market knows the Fed is in a tight spot when it comes to raising (hence the fall of the 10Y).
It's also humorous that people who have been short from the 1240-50-60 areas before the rally to the mid 1290's, are now claiming victory even though they were just $50 underwater and are finally starting to break-even on this healthy gold pullback. A broken clock is right twice a day.
Good luck.
Note
As usual I underestimated the drop by roughly $10 (I always tend to forget that gold overextends both rallies and falls).Good thing is miners have continued to hold strong. I'm currently long in BTO, EDV, and SSL on the TSX (Not holding any senior miners). I added to these positions today after reading the Fed's minutes.
I will be watching here closely to see if this rally continues, or if we break down. But given the current strength of miners, I believe we will bounce from here.
Note
There was another random selling last night which caused both silver and gold to drop. It appears that these are ruining gold technically, however the underlying fundamentals are still the same.Wage growth missed again today, and on top of that they revised the prior months lower. This goes against what the Fed has been saying, however I believe they will continue to tighten as they really aren't data-dependent anymore.
Either way, I'm staying long gold. As noted numerous times, I am not a day trader, I'm an investor, and junior miners have held up very well during this drop.
Note
I forgot to update that I had closed my position on BTO (a little too late imo), and am now solely running positions with SSL and EDV (increased positions).Note
If we can continue to rally from this level, then it looks like this was a false breakdown of the current trend-line we're on.A bounce from here should place us safely on the bull side of the 6-year trend-line.
Note
Update on my portfolio...No longer holding SSL or EDV. Now only holding BTO and ABX.
Really like ABX from a technical perspective right now.
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