Saturday, March 1, 2014

Precious Metals Complex charts

the metals complex had quite a thrust higher since we last looked. Here's a chart of the PMC Weighted Index:


(the weighted index is similar to the PMC Index I introduced last year, but instead of being equal parts GLD, GDX, SLV, it consists of three parts GLD, two parts GDX, two parts SLV, and one part GDXJ.)

it is interesting how we appear to have met resistance right at the level of the two shoulders during the previous bearish sequence. Perhaps the complex will find support near the former neckline? don't know, aside from my initial entry in early December I haven't done very well micro-managing this trade, so I better just go about my business. however, I will buy more FSAGX if this complex chart retraces to that old neckline.

here's an update on that PMC ratio chart I posted a few weeks ago:


not that I was paying attention at the time, but at the height of the recent rally you'll note the divergence on the ratio chart compared to the weighted index up top. I am not swing trading these markets, so minor tells like that don't concern me much, but for those who are trading more actively, little indications like that can prove quite valuable. (or they can screw everything up if you don't know what yer doing.)

and now for my favorite chart, a combination of the weighted index and the ratio index (it's just the geometric mean of the two series):