Risk is still to the downside and for those looking to go long based on days like Tuesday, it may be best to be in and out of positions quickly because it is not an environment to expect a sustained rally. The only rally that may be coming is in the precious metals.
Goldbugs, I feel your pain. Every rally since 2011 has failed. There were major rally attempts in 2016 and 17, both failed. Gold has been in a tight range of roughly 350 points since July 2013.
It’s a long time and starting to remind many people of the 1990s when it stayed in a tight range for three years until it came to its final bottom. They more than made up for it for about 10 years.
Here’s the good news. For all the heartbreak, the low has been holding since 2015 and they made a higher low in 2016. If the low right now were to hold, it would be another higher low.
Why are we talking about precious metals? There is an incredible vibration on the GoldMoney (XAU) mining stocks at 138 weeks off the January 2016 bottom at 38.37. It’s always amazing when this stuff works, so there are a lot of amazing conditions in the market. But its even more amazing when it starts to work in a large time frame.