After reaching a relatively frothy net speculative long position of over 165,000 contracts as of the August 12th Commitments of Traders report (CoT), gold speculators have capitulated over the past three weeks by cutting their net long exposure by over 60,000 contracts – here are the last 3 CoT reports presented in chronological order: Click to… Continue Reading

Some quality material we have selected for your edification this morning….. Charlie Bilello – Slackonomics 101 Advisor Perspectives – 3 Things Worth Thinking About The Reformed Broker – 2015 Will Be the Year  of the Stockpicker! FT – Nato states to form coalition to fight ISIS CNBC – Why Goldman’s gold man recommends shorting gold

The most important charts of the day presented with concise commentary: Click to enlarge EUR/USD Daily Massive breakdown in the euro currency following the ECB’s decision to cut rates further and increase asset purchases Gold Miners (GDX) Daily GOOGL Daily  GOOGL continues to struggle  with an upside breakout from the ‘diamond’ pattern High-Yield Bonds (HYG)… Continue Reading

The ECB openly entered the quantitative easing game (QE) this morning with a plan to purchase a “broad portfolio of transparent asset backed securities”. The chart below clearly illustrates why the ECB has finally hit the panic button with regard to QE: Click to enlarge Source: FT “Should it become necessary to further address risks of too… Continue Reading

Some quality material we are reading this morning: FT – ECB acts to boost eurozone with rate cut and asset purchases Ryan Detrick – Bears at Their Lowest Level Since 1987. Now What? Howard Marks – Risk Revisited Bill Gross – For Wonks Only Kitco – Will Seasonal Trends Support Gold Again?  

After today’s $23 decline gold is at a key juncture – here are the most important charts: Click to enlarge Gold (Daily) – testing bottom rail of downtrending channel Gold (Weekly) – H&S bottom with key support at $1240 Gold (Weekly) – break of multi-month symmetrical triangle targets ~$1050 There can be no doubt that gold is at… Continue Reading

As we enter what has historically been the most bullish month of the year for gold, gold futures are tumbling through key technical levels in a vicious sell-off: Click to enlarge With this morning’s breakdown from the large multi-month symmetrical triangle it is difficult to find anything positive to say about the near-term prospects for… Continue Reading

The euro currency is in absolute free fall: Click to enlarge EUR/USD is pretty oversold in the short term, however, there can be no doubt that this currency pair is in a very strong downtrend and likely has much further to fall. From the Goldman Sachs currency team: “We also believe that the dynamics of… Continue Reading

The TSX-Venture Composite is on the verge of a significant breakout after quietly rallying 3% in the past couple of weeks: Click to enlarge Next up is the 1020-1025 resistance zone followed by the March high at 1050: Above 1050 there is a wide volume-by-price ‘air pocket’ all the way up previous support near 1170 –… Continue Reading

Yesterday the GDX printed a rare and extremely bullish reversal candlestick: Click to enlarge The conditions for this candlestick were as follows: 1. Price was in a short term downtrend heading into the trading session 2. Price gapped up 3. Price close above the previous day’s high 4. Volume was higher than the previous day’s… Continue Reading

According to the International Copper Study Group (ICSG) the global copper market deficit is currently at its largest in 7 years: Click to enlarge From Morgan Stanley: Meanwhile, the technical picture looks quite promising after copper found support last week at the uptrend drawn from the March lows: A breakout above $3.25 would indicate the… Continue Reading

Exactly 4 years ago today silver broke out from a multi-month consolidation: Click to enlarge Silver would go on to nearly triple in price before topping out at $49.82/oz on April 25th, 2011. Notice the thick volume-by-price bar that silver had formed near $18 back in 2010, a similar phenomenon is taking place in silver right… Continue Reading

Gold futures suffered a sharp fall overnight which broke through a key area of support: Click to enlarge Gold 1-minute (December futures) Gold 4-hour (December futures) Gold now finds itself at a crucial juncture as it tests the bottom rail of the large symmetrical triangle: Gold Daily (December futures) Less than four days after we offered the… Continue Reading

Some quality material we are reading this morning: WSJ – “Another Bear Bites the Dust” Advisor Perspectives – “Two Measures of Inflation and Fed Policy” TraderFeed – “Building Your Pyramid of Success” The Reformed Broker – “How can you have euphoria when nobody gives a sh*t?” FT – “Glencore plan $1bn share buyback”

At first glance most would probably think that the title of this post is a mistake or a cheap ploy to get page views. The truth is that the charts of Canadian Solar (CSIQ) and gold actually have a lot in common. Compare the monthly chart of gold to the weekly chart of CSIQ and see… Continue Reading