That was mean. That was very mean. I had mentioned last week that I wouldn’t mind if gold came back below $1300 to perhaps 1288/1290. Yesterday in my notes I was a bit up in the air on gold as I was getting such conflicting signals having been impressed with the performance of our own gold index. So what happens – gold promptly falls below 1300. But not only that, I was a bit cautious on gold yesterday simply because palladium was weaker. So today gold falls and palladium goes up!
US dollar finally had an up-day. Volume was huge on the Dollar ETF’s. Is it finally going to rally?
Wall Street mixed again. Today the buying was best seen in XLI (Industrials) and XLF (financials). Musical chairs perhaps….
Overnight LIT (lithium) did finally have a correction putting in a key reversal day – went higher than the previous day and then closed lower. Volume was massive again. As I had mentioned in recent days, the rise in LIT was looking like the type of rises we used to have when we were having a mining boom. At this stage, I think it was just very overdone and with a bit of a correction, we should see renewed buying.
I was looking at a lot of charts of lithium stocks in our market yesterday. What got me interested was that I saw a list of stocks on Hot Copper of serious lithium stocks as well as hopefuls. I love lists of stocks and seem to be forever putting them in my little black book but on this occasion, there were actually 66 stocks listed. Not only that I saw a few more mentioned during the day. I have to admit that such a big list of stocks really frightened me and would suggest that it was probably getting pretty late in the day in this little boom we have been having. While I can accept that we have far more stocks listed these days than we might have in past booms but that is a lot of little stocks looking for lithium. In instances like this I am always tempted to ask – what is the next boom metal?
A cross section of commodities was interesting. Crude better. It is really pushing the downtrend from the beginning of this year. The only problem I have (isn’t there always something to worry about) is that the US ETF for this sector is getting quite overbought. But this really is a very encouraging development longer term.
Cattle futures were very strong. Food again. Markets are giving us a message. On this theme, mentioned softs a couple of times in recent weeks – cocoa and sugar very strong again – yes food. And there was a little bit of green across the grains!
Our market was very sloppy yesterday. I really am getting concerned that we have not been able to rally when New York has been creeping higher. What happens when they do finally turn down?
I’m away from my office again for the next ten days. I am hoping that by the time I come back, the life of a simple little chartist is going to be easier.
(20min delay)