Thanks for your observations, SD. I respect TA and wave theories, but lean more toward FA. For instance, we've had anything but the normal summer doldrums this year. In any other season, such a rise in metals prices and mining shares would logically, and by TA, suggest a cooling period is at hand.
This time, however, I'm not so sure, because we are about to leave the "doldrums", and enter the fall market season, during which time we usually see the strongest moves of the year - ahead of the tax loss selling season. Meanwhile, looming and actual negative interest rates globally, together with political uncertainties keeps pressures on metals. No telling what the U.S. election in November will bring, but that also coincides with tax loss selling.
So, is there room for a correction in the very near term? Probably so. Will it happen? I have to shrug, but if it does, I can't see it as anything more than a short-lived event, at least until we see tax loss selling (which could be mild this time around).
By the way, TA and FA have been predicting a re-balancing of the gold to platinum ratio for a very long time. Never in history has the ratio be so distorted, nor for such an extended period. I don't know which part of analysis applies here, perhaps one not previously considered, but I don't look for a re-balancing coming any time soon.
Why? Because in these times the monetary value of gold and silver much exceeds the commodity/industrial value of platinum. ...my theory, anyway, and the market seem to agree, though I have seen no other comments on this.
Anyway, we shall see how these markets play out Interesting times ahead..
VP in AZ |
