The futures markets are indicating a lower market opening, as equity markets around the world are selling off. There does not appear to be any apparent reason for the sell-off, except for the lower confidence numbers from Europe. That said traders remain largely on hold, awaiting Friday's speech from Bernanke at Jackson Hole, where they (and myself for that matter) hope to gleam any insight on future monetary easing. My guess is that those sitting on the edge of their sits waiting for tomorrow's speech by the Bernank will be disappointed one way or another. The real fireworks will likely come in September when both the Fed meets and the ECB provides more insight into their bond buying program.
In the meantime, I remain on hold in my portfolios. I am awaiting a stronger buy signal to add to my precious metal stock positions, continue to hold coal stocks, and remain largely in cash, outside of other smaller positions. In one sense, I think the market is due for a pullback, for reasons including a lack of any QE3 in the short-term and a poor earnings growth environment.
This rally appears to be running on fumes, as volume levels have been anemic at the highs relative to the volume levels it is running in to. That said, the market has pulled off an impressive rally from the May/June lows, and I am encouraged by some improvement in a number of indicators, including housing statistics and money supply.
As for the MarketVectors Gold Miner ETF (ticker GDX), I am getting more constructive on the group as the ETF pulls back into the August 20 swing point on lighter volume.
The gold and precious metal miner stocks are weakening as gold prices pause following the recent run. This also looks like a consolidation move, alleviating overbought conditions. I would not be surprised for gold to pullback into the 200-day/50-day moving averages, closing the August 20th gap, as exemplified by the Spider Gold Trust ETF (ticker GLD).
In the meantime, I remain on hold in my portfolios. I am awaiting a stronger buy signal to add to my precious metal stock positions, continue to hold coal stocks, and remain largely in cash, outside of other smaller positions. In one sense, I think the market is due for a pullback, for reasons including a lack of any QE3 in the short-term and a poor earnings growth environment.
This rally appears to be running on fumes, as volume levels have been anemic at the highs relative to the volume levels it is running in to. That said, the market has pulled off an impressive rally from the May/June lows, and I am encouraged by some improvement in a number of indicators, including housing statistics and money supply.
As for the MarketVectors Gold Miner ETF (ticker GDX), I am getting more constructive on the group as the ETF pulls back into the August 20 swing point on lighter volume.
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