Good day everyone. We’ve got the markets modestly higher on the day,
and still no signs of a reversal at this point following the negated
sell signal from earlier last week.
Oil’s up, gold’s up, the major
indices are up. Actually, most sectors are up, ex biotech, which is
getting a bit of a beating due to some bad news coming from Amgen.
We still like pharma and biotech long-term though, despite Trump’s rhetoric regarding the space recently, but he has quietly hinted at reducing the overly stringent red tape regulatory environment the FDA has become so popular for in recent years, so that should help the space on a long-term basis. We’re just not convinced quite yet the space is ready to roll.
Back to gold for a second. Provided below is a weekly chart of GLD, the primary ETF tracking the price of gold. As you can see, this week likely confirms some pretty nice railroad tracks. Meaning, last week’s down bar here was met with a complete retracement back to the upside, suggesting gold once again could be in for another sharp leg up.
This is assuming of course gold GLD closes at or above where it is so far on the morning.You can also see ever since December the precious metal has kept itself above its 3X3 DMA (blue line) on its weekly chart, at least up until the last few weeks anyway. However, the fact it has found its way back below it for a few weeks is all pretty normal.
As a matter of fact, we’d be very surprised if it doesn’t find its way back above it at some point over the next few weeks. That would put GLD somewhere above $118, and more importantly put it in position to stage another nice leg up.
We still like pharma and biotech long-term though, despite Trump’s rhetoric regarding the space recently, but he has quietly hinted at reducing the overly stringent red tape regulatory environment the FDA has become so popular for in recent years, so that should help the space on a long-term basis. We’re just not convinced quite yet the space is ready to roll.
Back to gold for a second. Provided below is a weekly chart of GLD, the primary ETF tracking the price of gold. As you can see, this week likely confirms some pretty nice railroad tracks. Meaning, last week’s down bar here was met with a complete retracement back to the upside, suggesting gold once again could be in for another sharp leg up.
This is assuming of course gold GLD closes at or above where it is so far on the morning.You can also see ever since December the precious metal has kept itself above its 3X3 DMA (blue line) on its weekly chart, at least up until the last few weeks anyway. However, the fact it has found its way back below it for a few weeks is all pretty normal.
As a matter of fact, we’d be very surprised if it doesn’t find its way back above it at some point over the next few weeks. That would put GLD somewhere above $118, and more importantly put it in position to stage another nice leg up.
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