Can, Will Precious Metals Rise From the Mat?
$GLD, $SLV, $MTAFF
- Gold finished +0.7% to 1210.80 oz in NY Wednesday
People are asking me: Can the precious metals rise from the mat?
The Big A: Yes.
It is important to note that when 2 of the 5 sentiment indicator shift to more positive sentiment, to pay attention.
The implication is that the money is rotating out of tech, and the financials and looking for fresh opportunities in areas that have beat down.
With gold and precious metal miners, opportunity comes about because the USD declined, rates eased a bit and the emerging markets stopped the bleeding.
GLD the ETF, in a steep Bear phase, did what the IWM and QQQ could not do-it cleared the fast-moving average.
XME, the ETF for metal miners (steel, copper) retraced right down to its Key monthly MA and bounced.
EEM (emerging markets ETF), also tested a Key monthly moving average and put in a 2-Day brick wall bottom.
These technical retracements down to long-term MA’s are very positive signals.
The monthly MA’s we like to use relate to identifying turns in the 7-year business cycle.
That applies to XME and EEM.
XME spent nearly 7 years under the monthly MA, clearing it in January 2018. It is literally walking that line, with one more push up, may well confirm the decliner from January’s high is finished.
EEM is not as clear.
Between the Ys 2011 and 2015, EEM traded in a range between 35.00 and 45.00. That covers the monthly MA, making it difficult to discern its next macro move.
In mid-2017, EEM cleared that average, and after a big run North until Y 2018, it has sold off, now it is testing that mark at with every tick.
The exception is GLD.
Although it tested the monthly MA in Y 2016 and early in Y 2018, it has not cleared it since Y 2013.
So, gold bulls, no need to worry about missing that move. When/if GLD takes out the monthly MA, not only will buyers have a clear signal, but it might also be the time that all all commodities turn North.
As I look into my crystal ball, I continue to anticipate a major shift is happening, I called the last one!
Meantime, here is a virtually risk free way to play Gold and Silver, 1 that we like and have been following since it’s launch in Y 2017 have a close look, and here is the HeffX-LTN archive going back to its beginnings.
Metalla Royalty and Streaming (OTCMKT:MTAFF) was formed by CEO Brett Heath to provide stakeholders with leveraged precious metal exposure by acquiring royalties and streams. The firm’s goal is to increase share value by accumulating a diversified portfolio of royalties and streams with attractive returns. It has built a strong foundation of current and future cash-generating asset bases, combined with an experienced team gives Metalla a path to become one of the leading gold and silver companies for the next commodities cycle, positioning is Key.
For further information, please visit Metalla’s website at www.metallaroyalty.com
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