This Stock Sits at 24-Year Support
CLF on a weekly basis below. Had put this on my radar to pick up at $16 but got preoccupied with other things late last week and missed. Regardless, the $16 target was defined by 24-year support line (1) in…...
Gold at its Most Critical Juncture Since 1999 Secular Lows; About to Begin Out-Performing Again?
The chart below plots the ratio of the SPX vs. gold. As of mid 2011 that ratio had declined by ~90% from its 1999 highs, defining the opposing secular bear and bull markets for the SPX and gold, respectively, over…...
Up Nearly 60% in Six Months, Nikkei Has Reached Our 14K Price Target for 2013
We became bullish on the Nikkei as far back as last June at the global equity / EZ-crisis lows and began to increasingly pound the table on that thesis as 2012 wore on as posts here and here suggest. Last December when the…
Global Macro Overview
In the charts below the following noteworthy events are occurring: Mega-cap gold miner ABX is at 20-year support as well as its 2008 panic lows while its YoY is more negative than it’s ever been at -56% The ratio of the…...
What to Make of the Recent Decline in Euro Financials?
Put this together yesterday, failed to get it posted. Anyhow, believe it’s time to over-weight this group again, as we did last summer before it was trendy to “buy Europe“. That call led to huge alpha being generated by being…...
This Sleepy Industry Could Begin to Out-Perform
The ratio of the DJ Electricity Index vs. SPX is plotted below. The ratio appears to have broken out from a bullish descending wedge pattern last week. A similar pattern formed b/t 2000-2004. When it completed and broke out, the…...
Isn’t the USD Supposed to Drive PMs?
A few weeks back we plotted the Yen against various PMs in this post and suggested the latter had to “catch down” to the former given 1) they have tended to act as leading indicators for one another’s fair value, with…
Copper’s Technicals
A few weeks back when the metal stood at ~$3.50 we had a post on copper noting its technicals looked reasonably weak and if our read was correct, it had the potential to fall to ~$2. We update that technical set-up…...
Evolving Thoughts on How PMs Might Work into the Overall Macro Framework
Here’s a chart originally shown the other day comparing silver’s move from 1967-1973 vs. 2010-2014. The two share a good deal of similarity. If the pattern recognition is correct, silver might presumably begin to base in the $19-$20 area in the next few weeks,…...
How Bearish is Gold Sentiment?
Not all that bearish, at least in the context of history, when gold is in a bear market, according to SentimenTrader. In other words, public opinion can sour much further than it already has, and stay that way, when the…