.......Reliable Lead Indicator NEM Near Resistance
Reliable lead indicator NEM rallied toward it's Cyclical Bear Market downtrend line in place since 1-31-06, NEM's high today was 52.65, see first chart at http://www.joefrocks.com/GoldStockCharts.html. The big spike today could be the last gasp of the short term upcycle since last Tuesday 8-29 and the minor intermediate term upcycle since June 13.
The gold COT (Commitments Of Traders) data (http://www.cftc.gov/dea/options/deacmxsof.htm) pointed to some strength this week since the Commercial Traders traded net long and the Speculators traded net short, but, the non contrarian gold Commercial Traders made what borders on an unusually large long trade (close to a 10% increase in their long position) that portends weakness.
The bottom line is that this is probably a typical dumb money spike in which reliable lead indicator NEM rallied toward it's Cyclical Bear Market downtrend line (in place since 1-31-06) and not something to get excited about. ....... http://www.JoeFRocks.com/
The gold COT (Commitments Of Traders) data (http://www.cftc.gov/dea/options/deacmxsof.htm) pointed to some strength this week since the Commercial Traders traded net long and the Speculators traded net short, but, the non contrarian gold Commercial Traders made what borders on an unusually large long trade (close to a 10% increase in their long position) that portends weakness.
The bottom line is that this is probably a typical dumb money spike in which reliable lead indicator NEM rallied toward it's Cyclical Bear Market downtrend line (in place since 1-31-06) and not something to get excited about. ....... http://www.JoeFRocks.com/
posted by Joe Ferrazzano at
10:38 AM
