New Day, New ATHs With Gold In The Wings

The stalwart performance in the miners goes on after a daily pause as gold gathers strength and silver outperformed yesterday. Silver miners and gold juniors are pulling ahead reliably as well, not just gold seniors. The run on $1,760 awaits.

Let‘s move right into the charts (all courtesy of www.stockcharts.com).

S&P 500 Outlook

S&P 500

S&P 500 is no longer trading above the upper border of Bollinger Bands, the price action remains bullish, and volume is ever so slowly picking up (sending weak early signs thereof), but the bulls better watch out for a catalyst forcing a down day once in a while again.

Credit Markets

HYG and LQD

Both high yield corporate bonds (HYG ETF) and the investment-grade ones (HYG ETF) turned around yesterday, and so did long-dated Treasuries – and that supports the bullish spirits in stocks. It was indeed right to view the prior non-confirmation as not too pressing at the moment.

Technology and Value

technology, NYFANG and value

Tech (XLK ETF) rose strongly yesterday, and so did the kingmaker $NYFANG (lower black line) and Tesla that I called out yesterday. But value stocks didn‘t sell off – a powerful testament to the TINA trades driving no real rotations to speak of as nothing gets really sold off just on its own.

Gold and Miners

gold and long-dated Treasuries

Gold isn‘t in a decline mode anymore and appears picking up strength so as to take on the $1,760s. Volume is returning, and the current reprieve in rising yields is welcome.

gold and HUI

Miners returned to the limelight, and it‘s my view they would lead gold by breaking above their recent highs convincingly, as the tide in the metals has turned. Time and desirably a catalyst of such a move is all that is needed. Geopolitics (to the short-term rescue) or more unavoidable inflation data bringing down real rates, that‘s what I am looking for next.

Silver and Miners

silver, silver miners and gold miners

See the gold and silver miners trading in lockstep, remember gold juniors as well, and you get this bullish picture where the whole precious metals sector is slowly coming back to the limelight. In the case of silver, the return in volume is boding well for the days ahead – all without the classic signs of bearish isolated silver outperformance.

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