Some quality material we are reading this morning….. TraderFeed –  “The same price movement in different environments of market psychology can lead to very different forward price paths.” Ryan Detrick – “Why August Volatility Is Normal And Bulls Are Still In Charge” Advisor Perspectives – “Commodities…Time To Catch a Falling Knife?” Bloomberg Businessweek – “Iceland… Continue Reading

A series of lower highs/higher lows often leads to the formation of a symmetrical triangle (coil). Such is the case currently with gold which has been coiling for weeks near an important price memory zone near $1300: Click to enlarge Since the April 2013 gold crash the $1300-$1325 area has served as a powerful magnet… Continue Reading

The technical definition of a stock market correction is a decline of 10% or more. According to this definition the US stock market, as represented by the S&P 500, has not suffered a correction in more than two years (May/June 2012): Click to enlarge The November 2012 decline clocked in at -9.75%, falling just shy… Continue Reading

After a parabolic rise between 2004 and 2007 uranium has suffered through a rough last seven years. However, there are some clues that uranium prices may be in the process of bottoming: Click to enlarge Source: The Ux Consulting Company, LLC $20 is clearly an important long-term price level that should act as major support… Continue Reading

The wild excitement and crazy price fluctuations of 2011 seem to be a distant memory. Meanwhile, the mainstream financial media barely talks about gold and most portfolio managers are underweight precious metals and mining shares. While the casual observer might interpret this relative lack of interest in gold as a sign that the yellow metal has… Continue Reading

Some quality material we are reading this morning: Adam Grimes – Just One More Little Thing Advisor Perspectives – Are Investors Really All That Bearish? TraderFeed – What We Can Learn From Stock Market Sentiment WSJ – Hedge Funds Are Digging Gold Miners Reuters – Russia sending aid convoy to Ukraine despite Western warnings of ‘invasion pretext’ Hussman… Continue Reading

Perennial laggard Newmont Mining (NEM) might have the most interesting chart out there right now. After being a chronic underperformer for much of the last decade, it appears that NEM may have finally turned the corner: Click to enlarge NEM Daily The daily chart clearly shows that NEM is on the verge of breakout out above… Continue Reading

Investors may be staring at an unusually attractive buying opportunity in the TSX-Venture Composite: Click to enlarge The TSX-V has pulled back to an area of confluence (lower Bollinger band, trendline support, 200-day simple moving average) just as the junior resource sector enters its most bullish time of the year. Investors might not want to wait… Continue Reading

Morgan Stanley recently pegged the marginal cost of gold production at $1,254/oz, up from a previous estimate of $1,200/oz. With the gold price recently floating near $1,300/oz this poses significant challenges for higher cost miners who are struggling to maintain profitability. However, with every challenge there lies opportunity. For lower cost senior producers who are… Continue Reading

In recent weeks silver has quietly pulled back into an area of important support/resistance: Click to enlarge Not only does the $20.00-$20.50 area represent important support/resistance, there are also a couple of other technical developments which make this a potential sweet spot for silver; the rising 50-day SMA is on the verge of crossing above… Continue Reading

For the first time since November 2012 the Russell 2000 small cap index (IWM) closed below its 50-week simple moving average on a weekly closing basis: Click to enlarge 50-week SMA in blue If we zoom in things look a bit more troubling: A double-top is clearly discernible as relative strength (RSI) approaches fresh 2-year… Continue Reading

A tour de force post from Lance Roberts on the end of QE: “The End of QE: Some Common Misunderstandings” After delving into the history and shortcomings of the Federal Reserve’s 5+ year QE program, Mr. Roberts concludes with the following: “The point here is simple. The ending of the current QE program is an effective… Continue Reading

Mega gold producer Newmont Mining (NEM) reported 2nd quarter results today which narrowly surpassed consensus estimates while raising 2014 production guidance. From our perch the most interesting part of the report came in the form of slide #9 from NEM’s earnings release presentation: Click to enlarge This is an important slide because it shows that Newmont… Continue Reading

The vast majority of gold miner charts share a familiar chart pattern that has been forming during the last year, the head & shoulders bottom: Click to enlarge GDX Weekly This pattern is now at a crucial inflection point which could be resolved within the next week. In addition to the bullish seasonal period we are… Continue Reading

There are a rapidly growing number of blue chip stocks that are breaking down below key moving averages and levels of support: Click to enlarge BA CAT GE VLO Add this to the persistent weakness in small caps, deteriorating market breadth, bearish seasonality and there are mounting warning signs that an inflection point for equities… Continue Reading