Post CPI rally? Everything is fine!
Kitco Commentaries | Opinions, Ideas and Markets Talk
Featuring views and opinions written by market professionals, not staff journalists.
Here is yet another update of the long-standing DXY chart we have been presenting shown below -- again on the weekly timeframe: As we have been writing and re-iterated yesterday, "Although it may yet take some time for the DXY price to catch down to momentum, the target remains the prior breakout point around the 102-3 level. A lower-than-expected CPI print would probably accelerate the process."
Well? Process Accelerated.
A refresh of the SPY chart we've been showing for a long time, on the 4-hour timeframe. On Monday, we wrote, "As long as support holds at the bottom of the Bollinger band and 50-MA, both momentum and price should tun back up to at least test the pre-Powell high; beyond that, the open gap remains the target, all be it now perhaps an extended one." With the bands and MA removed, the picture is easier to see. The pre-Powell high has been reached, and although a pullback should be in order, the arrow still is the extended target.
Gold bulls have BLASTED through $1715 and are challenging $1750 today already. The below weekly chart is a refresh of yesterday's; note the stochastic RSI trying to stretch into overbought territory. In all likely hood, it will get into the yellow zone before or as the price tops out.
Finally, how about that double-leveraged Canadian Gold mining ETF (ticker HGU) we presented as an option (In late September, no less) for the brave gold bettors? So far, so good; but the trade remains for the brave…
Not to pour cold water on the positive sentiment, but, it's only fair to remind investors that Powell has been using any runway the market provides, to build a running start to the swing his hawkish club- all just part of the "soft landing" strategy? Don't expect any easy rides up in this market.
Thanks and have a great day,