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Precious Metals Update

a/d line precious metals breadth xau/yahoo

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#1 fib_1618

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Posted 29 January 2017 - 12:21 PM

Well...the good news is that gold saw our expected year end bottom, but the the bad news is that we didn't have our hoped for type 1 divergence that can create a robust price trend and the chart action since the December lows reflects this.

 

With the Federal Reserve continuing to beat a hawkish drum on the cost of money, this will continue to keep the price of gold from breaking above both the accelerated and primary lines of negative trendline resistance. But the good news there is that both junk bonds and closed end bond funds continue to see good inflows of capital investment, and this should eventually work its way through the financial system as liquidity finally becomes "excessive" which is gold's best friend.

 

Bottom line: the road traveled for the bulls should continue to be a bumpy one short term, but the path of least resistance, on an intermediate term basis, should continue to be a friendly one going into the second quarter of 2017.

 

Fib

 

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#2 dougie

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Posted 29 January 2017 - 02:02 PM

What a perfect marriage of the fundamental and the technical
Thank you

#3 AChartist

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Posted 29 January 2017 - 06:56 PM

I hope there is a good run for a few, up to 8 days but then cycles look down for a few weeks.

 

I will have to sell some and maybe use dust in several days. Stock market should also be down

 

in that time to late Feb too. What if dust hit a gap at 27.45 I would have to buy some calls.

 

Stock market looks to top sooner than gold and I will want some short term vxx calls for 3-4 weeks on Feb 1.

 

So maybe stocks are rolling over sooner and gold takes the bid a few more days on rotation out of stocks, but then they are both down until 

 

late Feb.


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#4 AChartist

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Posted 29 January 2017 - 08:40 PM

I will add to some silver tomorrow and see how it goes for one week, probably

paas. When the cycles are lined up down for daily in about 8 days and weekly as a 2-3 week

V-bottom decline affair, you can see an inversion. That said I'll still plan for a high in 7-8 days.


"marxism-lennonism-communism always fails and never worked, because I know

some of them, and they don't work"  M.Jordan






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