The Canadian Technician

Gold Stocks Are Not Supporting Gold


I have been a big believer in Gold stocks. Over the last couple of months, all of my best performers have been in the space. Yesterday I was getting concerned but today I was watching stock after stock take me out.

Perhaps it is easiest to spot on the Gold bear chart HGD.TO. The DUST ETF is the same.

With a nice setup on Gold, this was looking good. The breakout on this inverse ETF here is concerning.

The $CRB chart is very fragile. Seeing the momentum make a lower high and roll over at zero is very concerning. This fits with oil's weakness as well. We have already seen the industrial metals chart crack. Here is a link to the PICK ETF chart.

The bottom line for me is the commodities markets are rolling over. Careful staying with the trade if you get sell signals. All of these videos have a positive outlook for gold stocks. That all changed today. I will be discussing it on today's Final Bar.

The Canadian Technician video shows the massive breakdown on almost every sector chart in Canada.  

Natural Gas has been behaving well but the exploration stocks around Natural Gas are still struggling with the overall market sentiment. Lots of information in here on the commodities and indexes. No new breakouts in currencies. The weekly $CRB chart is at a critical point here. Lithium and rare earth metals, steel and coal, copper and aluminum, gold and silver are all covered here.

This is a short look at the broad market setup and some of the indicators that told us the market was fragile ahead of the drop. Probably worth saving a link for use in future years when the market conditions go weak. 

If you are missing intermarket signals in the market, follow me on Twitter and check out my Vimeo Channel often. Bookmark it for easy access!

Good trading,
Greg Schnell, CMT, MFTA
Senior Technical Analyst,
Author, Stock Charts for Dummies

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Greg Schnell
About the author: , CMT, is a Senior Technical Analyst at specializing in intermarket and commodities analysis. Based in Calgary, he is a board member of the Canadian Society of Technical Analysts (CSTA) and the chairman of the CSTA Calgary chapter. He is an active member of both the Market Technicians Association (MTA) and the International Federation of Technical Analysts (IFTA).

Greg is also the co-author of Stock Charts for Dummies (Wiley, 2018). Greg joined in 2012 and has be instrumental in helping launch a variety of new blogs and other commentary platforms. Presently, Greg contributes market analysis commentary to The Canadian Technician, Commodities Countdown and Don't Ignore This Chart blogs. Learn More
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