While I hold a special place (in my thoughts and in NFTRH) for the gold stock sector due to its counter-cyclical nature, it’s a big market out there, and a strategic view of the macro helps with successful positioning. Following is a snapshot of some sectors/markets with general thoughts on each. I will provide one chart or graphic for each but not mark them up or get into too much technical or fundamental detail. There’s a weekend report for all of that stuff. For now, a brief review.
Gold/Silver Mining & Royalty
Gold miners have been fundamentally impaired by the inflationary macro as costs (energy, materials, humans) have outpaced product (gold) for well over a year. As with other markets/sectors, sentiment became overdone to the downside in September, and from there (one of our key downside support targets at 230), we projected a bounce, and with some stops and starts, the rally logically began.
I have now seen an Inverted H&S (bullish) show up among gold stock ‘analysts’ (code for ‘obsessives’ if all they manage are gold stocks amid a field of many sectors that are actually working). We projected a pre-FOMC pullback to the SMA 50, which would be the healthiest thing to do during FOMC week, and that is what Huey has done. The H&S potential lives although the trends are down. Continue reading "A Brief Sector Review"