Wealth Creation Through Natural Resources
Gold spiked $10 this morning ahead of the Fed’s big announcement which comes at 2pm EST: Gold (5-minute) $1075 is a minor resistance level with a much bigger area of resistance coming in around ~$1090. A rally above $1090 … Continued
The Federal Reserve finds itself in a tricky situation heading into Wednesday’s FOMC announcement. There has been a considerable build-up over the past several weeks (primarily from strong employment reports) which has led to the market anticipating a 25 basis … Continued
What we are reading this morning: McClellan – There are plenty of reasons to be bearish on stocks heading into 2016 Dana Lyons – Gold Speculators Haven’t Been This Bearish In 13 Years Value Walk – Third Avenue Credit … Continued
While the gold miners (GDX) continue to experience significant day to day volatility the ratio chart of GDX relative to the S&P 500 (SPY) shows a clean double-bottom pattern with a notable bullish momentum divergence: GDX/SPY (Daily) The October/November … Continued
Today’s 2%+ rally in gold comes after the latest Commitments of Traders Report (December 1st) from the CFTC shows that commercials have almost covered their entire short position in gold futures: This is unprecedented given that commercials are … Continued
With gold currently around US$1,064 an ounce, the gold mining industry is focused more on survival than M&A. But as producers mine ore and attempt to grind out a profit as gold moves lower, they are constantly depleting their resource. If … Continued
With the CRB Index plumbing new lows on a daily basis managed money such as CTAs and hedge funds are betting on more downside by moving to a virtually unprecedented net short position across the commodities futures complex: CRB … Continued
The gold miners as represented by GDX have tested the ~$13 support level more than a half dozen times since July and thus far this support level has held every time: GDX (Daily) Forget seasonality, forget extreme CoT positioning, forget that … Continued
Gold futures speculators have moved into full capitulation mode in recent weeks. The liquidation we have seen in gold since the October highs is one for the record books; a more than 135,000 contract reduction in net long exposure for … Continued
Gold is well on its way down to an important area of potential support around $1,000/oz; there is a great deal of confluence and price memory in the upper $900s/lower $1000s: Gold (Monthly) Throw in potentially extreme CoT positioning … Continued