The Bottom Line: Strength has provided an opportunity

Posted by Don Valiloux - Timing the Market

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Short term strength has provided an opportunity to take profits this week in a wide variety of economic sensitive sectors.

Selected sectors with favourable seasonality in the summer are starting to outperform the S&P 500 Index including gold, biotech and utilities.

 

Gold gained added $64.90 per ounce (5.35%) last week. Trend changed from down to up on a move above 1,267.00. Gold moved above its 20 day moving average. Strength relative to the S&P 500 Index remains negative, but showing signs of improvement. Technical score increased from 0.0 to 2.0 out of 3.0. Short term momentum indicators are trending up. ‘Tis the season for strength between July 12th and October 9th

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The AMEX Gold Bug Index gained 9.14 points (4.23%) last week. Trend remains down. The Index remains below its 20, 50 and 200 day moving averages. Strength relative to Gold and the S&P 500 Index remains negative. Technical score remains at 0.0 out of 3.0. Short term momentum indicators are trending up.

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Silver gained $1.05 per ounce (5.60%) last week. Trend changed from down to up on a move above $20.08. Silver briefly moved above its 20 day moving average, but closed below that level on Friday. Strength relative to Gold and the S&P 500 Index improved from negative to neutral. Technical score improved from 0.0 to 1.5 out of 3.0. Short term momentum indicators are trending up.

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Platinum gained $80.50 per ounce (6.07%) last week. Trend remains down. Platinum moved above its 20 day moving average. Strength relative to Gold remains positive and strength relative to the S&P 500 Index improved from negative to neutral.

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Palladium added $45.35 per ounce (6.69%) last week. Palladium moved above its 20, 50 and 200 day moving averages. Strength relative to Gold remains positive.

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The TSX Metals & Mining Index gained 25.43 points (3.71%) last week. Trend changed from down to up on a move above 710.49. The Index moved above its 20 day moving average. Strength relative to the S&P 500 Index is improving, but remains negative. Technical score improved from 0.0 to 2.0 out of 3.0. Short term momentum indicators are trending up.

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…..much more commentary and 40 more charts & categories in Don’s great monday report HERE