The chart below looks at US$ over the past couple of years and highlights that it could be creating some patterns often associated with price points where selling pressure gets started.
Below looks at the Dow Jones Transportation Index over the past 20-years. Before we discuss the chart below, let me be clear about this, the trend at this time remains up.
King Dollar has been on a roll the past three years, as it has rallied over 40% since the 2011 lows. Below takes a look at the US$ over the past couple of years.
Below looks at Silver Futures over the past decade. The Power of the Pattern in 2011, suggested that metals should be flat to down for years to come. (See 2011 Post Here) Since that posting, Gold and Silver have continued to create a series of lower highs over the past 6-years. Silver remains more than 50% lower than 2011 prices.
Below compares the performance of the S&P 500 and Real Estate ETF (IYR) over the past 10-years. Since the highs in 2007, IYR has little to brag about as it’s net asset value has declined 10%. The S&P during this same time frame is up 66%.
This past week the bull market in stocks, celebrated its 8-year anniversary, off the March 2009 lows. The bull trends off the lows in 2009 are still solidly in play, as key indices remain inside of long-term rising channels. Make no mistake the series of higher lows and higher highs has NOT been broken. click title to see chart
Ole Doc Copper has been creating a series of lower highs and lower lows since 2011. During this time period, stocks did well and many commodities did not. At the same time Doc Copper was soft, global growth had little to brag bout.
Historically when Gold is stronger than Silver, Metals bulls have not made quality buy and hold gains. Historically when Silver is stronger than Gold, both have done pretty well from a buy and hold basis.
The S&P 500 along with numerous indices have been screaming higher over the past 90-days. Pre-election fear levels were high and stock market bulls, were hard to find.
Below looks at the the Nasdaq Composite Index and the Russell 2000 over the past couple of decades. No doubt both of these remain in strong up trends, both creating a series of higher highs and higher lows.
If one is to be buy and hold Gold mining stocks, one prefers to see Junior Miners acting stronger than Senior miners. Since 2011, the Junior/Senior Miners Ratio (GDXJ/GDX) continues to create a series of lower high and lower lows.
