Gold And Silver Have Still Not Found A Bottom- At Least In One's Traders Opinion

Saw the below video from Kitco, and in the interest of broadening your view I thought I would share.


That said, my take is that the gap on the GLD will likely be filled but that the relative strength in the precious metal equities versus the commodity (for instance see RGLD) suggests we see better forward pricing on the metals. Additionally, there is some overhead resistance from trapped sellers that still need to be worked through.

Pull Your Money Funds Now

The SEC has approved new money market laws that could prevent you from accessing your money. As Reuters reports......


U.S. securities regulators adopted rules on Wednesday designed to curb the risk of investor runs on money market funds, capping the end of a years-long heated debate between regulators and the industry dating to the financial crisis.

The SEC's rule will require prime money market funds to move from a stable $1 per share net asset value, to a floating NAV. It also will let fund boards lower redemption "gates" and fees in times of market stress.

I had thought the reason for money markets to exist was because of the fact they were liquid instruments and you could access the money at any time. Guess not anymore. I wonder if this is another step in the move towards 'preventative' capital controls.

The Contrarian's Contrarian

This reminds me that I have to get back to my roots

Central Planners, monetary Hijinks, Crony Capitalist and the Times in Which We live

An overall great and informative interview.

Earnings Have Never Predicted Future Stock Prices

Instead watch the supply and demand......

The Embattled Dollar

Gold Complex Takes a Hit But......

Rather busy this morning but wanted to dash off a quick note concerning yesterday's gold and gold complex sell off. Although the weakness in the yellow metal appeared particularly worrisome, especially if you were reading the financial media, the action in the precious metal stocks was far less concerning.

Just look at the charts, First the GDX

And then RGLD

What is interesting here is that the pullback in the gold equities, particularly RGLD, one of the companies most levered to gold and precious metal prices, just brought the price trend back to the recent trend. More so, the intra-day lows appear to have been rejected, as volume on the downturn was light while buying pressure started to enter the market late in the day.

If I had to guess, and it is just a guess, I think yesterday's price action was a dab of short-term profit taking for those who entered the market in June and selling pressure from those trapped at or around the 52-week highs seen in March 2014 and August 2013. 

I would not be surprised to see a pullback in prices, considering the run we have had in 2014. That said and turning to my timing models........................

6-Month model

 Long-term model

The models have and continue to remain in a buy-range.