Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | UraniumSeek.com 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page 

 GoldSeek.com >> News >> Story  Disclaimer 
 
Latest Headlines

Will The Fed Sacrifice Retirement Portfolio Values For The "Common Good"?
By: Daniel R. Amerman, CFA

Here's How We Discovered This Disruptive Gold Stock... Before It Went Public
By: Frank Holmes

GoldSeek Radio Nugget: Rob Kirby and Chris Waltzek
By: radio.GoldSeek.com

Silver: Supported by D.C. and The Deep State
By: Gary Christenson

Blue Sky Uranium Reports over 1% U3O8 and 0.1% V205 in Pit Sampling Adjacent to Ivana Uranium-Vanadium Deposit
By: Blue Sky Uranium Corp.

Gold Oil and Commodities …Back to the Future?
By: Rambus

Investors And Analysts Know Nothing About Gold
By: Avi Gilburt

The New China and Gold
By: Arkadiusz Sieron

Pound Falls 2.5% Against Gold as UK Government in Turmoil Over Brexit
By: GoldCore

Gold Seeker Closing Report: Gold and Silver Jump 1%
By: Chris Mullen, Gold Seeker Report

 
Search

GoldSeek Web

 
Launch!


 -- Published: Friday, 4 March 2016 | Print  | Disqus 

By Gary Tanashian

While at near-term risk, the gold sector is launching, not blowing off

Okay, the title of the post is a bit of a joke at this late stage of the rally because it sounds like hype and we have actually been calling the move in the gold sector a potential launch for weeks now, since gold and HUI each busted through their bear market limiters, the EMA 75 and EMA 55, respectively.

gold and hui

That was four weeks ago.  Today the hype is all around and the sector is going vertical and is indeed at high risk now.  Big money is pouring into the sector right in line with the story the chart below and many other macro indicators have helped define.  We have been following myriad indicators since last summer when we began a theme of illustrating the proper ‘macrocosmic’ fundamentals needed to launch the sector.  Gold vs. S&P 500 is just one of them and it is now bullish, despite the current consolidation.

gold vs. spx

Ah but we are at high risk now, right?  Right.  Some writers are on this theme and are probably correct in calling the sector’s “blow off” a terminal thing.  But only if they are talking about it being terminal for this move, not for upcoming bull market potential.  Although I think the odds have shifted significantly in favor of the prospect that a bull has already begun, that will only be proven later when more technical milestones have been achieved.

In recent NFTRH reports and updates we have been talking about bear market rules vs. bull market rules.  For instance, the Commitments of Traders data are very bearish right now for gold and silver.  But there is historical precedent, which we covered in detail in NFTRH 384, showing a similar setup at the start of the bull market early last decade.

Some analysts have advised to beware the “blow off” in gold, which will bring on new lows.  But due to the fundamental view having improved greatly over the last few months and due to the technical milestones like EMA 75 and EMA 55 for gold and HUI above, a coming correction can be considered a launch phase to a new bull market as opposed to a blow off and blow out phase to a bull (ref. silver in early 2011).

Any coming pullback will be one of opportunity as it stands now, barring a complete undoing of the fundamentals that have gathered so firmly over the last several months.  It is advised that gold sector aficionados have pullback levels (i.e. key support levels) plotted out in advance for when their favorite miners are inevitably traded out by the momentum players now buying in.  That is what we will be doing.

NFTRH.com


| Digg This Article
 -- Published: Friday, 4 March 2016 | E-Mail  | Print  | Source: GoldSeek.com

comments powered by Disqus



 



Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to GoldSeek.com

 news.goldseek.com >> Story

E-mail Page  | Print  | Disclaimer 


© 1995 - 2018



GoldSeek.com Supports Kiva.org

© GoldSeek.com, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of GoldSeek.com and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on GoldSeek.com. This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer

The views contained here may not represent the views of GoldSeek.com, its affiliates or advertisers. GoldSeek.com makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of GoldSeek.com, is strictly prohibited. In no event shall GoldSeek.com or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.