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Has anyone noticed we just had an exceptional Day in Gold. ?
..broke thru 1350
Congrats to all here who saw an imminent break…I was a skeptic but….I think we got it ..and I’m excited !
Ya Huuuuuui !
PS…I left a message ( comment # 13 go figure) under Northstar’s cathartic post below …please read it …its a long story but worth the read I think.
Gold up today in all major currencies (except Rand. Ruble & Real) a very good day indeed from PM perspective.
Thanks for your insights NS hope you continue at the tent.
GLTA
We received a very nice Valentines Day gift from Mr. Market today. The strong whipsaw reaction by the precious metal sector, just after the US CPI data was released this morning, could be a game changer for the miners going forward. Gold sold off $5 just after the release, then whipsawed and exploded over $25 higher off of the $1330 resistance area. The miners also outperformed the metal today by over 2x with strong volume. The strong reversal from critical support at the $21 level on huge volume in the GDX during the last 5 minutes of trade last Friday, is indicative of previous long-term bottoms in the miners. If the GDX closes above $24.50 on this move, then the odds are even better for a long-term bottom being struck in gold stocks, with final confirmation being a close above the long-term resistance level of $25-$26. I strongly believe the whipsaw action in gold today on the CPI announcement could be telling us the market is now focusing on the Fed rate hikes lagging inflation, as opposed to the near-term rate hikes themselves, which is huge for the miners. We will need to see more follow through on the upside into the 3-day weekend with large volume to break through the $25 level soon. However, now that the Shanghai Exchange is closed during Gold Week, the sector will not be getting any support from the Chinese market……holding fast with a bit of cash.
That was one heck of a move that started with the classic false break downward to clean out the longs. There must have been a slew of buyers sitting with their finger on the trigger to see which way this market was going to break. I know I was.
I hear that!….built up a little more cash yesterday before the release fearing sector reaction to the downside. Felt great to be wrong!