Time to SELL or take profits from DUST
DUST is at monthly resistance and has diverged. not onw t further interested in a rally in DUST. If DUST falls below 33.82, this would further support the case for GOLD and gold miners. Multiple indicators has shown divergence. At this moment, gold bugs only need a catalyst to knock DUST down and for gold (XAUUSD) to break above its ascending triangle. Whether the stock market falls or goes up at this point is irrelevant to gold. If the SPX500 rises, gold can follow it or not. A fall in the dollar will support gold.
Further support: Around the end of July through the beginning of October since the year 2012, GDX (gold miners) rallies up in a three month bull run, then cycles down. This time could be the same. Some people believe gold is going to 900, but maybe that will happen AFTER it rallies for is natural 3 months bull run upwards as it has ben doing in the previous years every year.
Potential catalysts:
(1) Countries start buying Gold
(2) Fear in the market or uncertainty
(3) Raising rates if economy or corporate earnings are not ready to handle it.
(4) World chaos
(5) Negative employment situation (August 7, 2015 (tomorrow))
(6) Resilience in gold miners
(7) CEOs or directors start buying shares (not corporate buy backs) <-- not necessarily a catalyst; however, gives gold bugs confidence.
(8) China's currency of the yuan is given reserve status in the IMF, being included into the IMF's SDRs. This alone would attract 100s of billions of dollars into the yuan and away from the dollar.
(9) More delays in interest rate hikes
(10) ....I am sure there are others that I haven't thought about yet. There is always something in the markets to surprise us. So, I keep an open-mind.
Further support: Around the end of July through the beginning of October since the year 2012, GDX (gold miners) rallies up in a three month bull run, then cycles down. This time could be the same. Some people believe gold is going to 900, but maybe that will happen AFTER it rallies for is natural 3 months bull run upwards as it has ben doing in the previous years every year.
Potential catalysts:
(1) Countries start buying Gold
(2) Fear in the market or uncertainty
(3) Raising rates if economy or corporate earnings are not ready to handle it.
(4) World chaos
(5) Negative employment situation (August 7, 2015 (tomorrow))
(6) Resilience in gold miners
(7) CEOs or directors start buying shares (not corporate buy backs) <-- not necessarily a catalyst; however, gives gold bugs confidence.
(8) China's currency of the yuan is given reserve status in the IMF, being included into the IMF's SDRs. This alone would attract 100s of billions of dollars into the yuan and away from the dollar.
(9) More delays in interest rate hikes
(10) ....I am sure there are others that I haven't thought about yet. There is always something in the markets to surprise us. So, I keep an open-mind.
Capturing the swings of the stock market & currency market. It's a dirty job and equity/currency traders must do it.