SPX Cycles, Fed Funds and Gold-
This “amateur cyclist’s” chart (I am anything but a cycles analyst) of the S&P 500 shows that the 12 month marker (C12) meant exactly nothing as the market remained firmly on trend, after brief pokes down in April and May. We noted that C12 was a lesser indicator than the 30 month cycle, which has coincided with some pretty significant changes (+/- a few months). That cycle (C30) is coming due at the end of the summer. Will it mean anything? Well, this market eats top callers for breakfast, lunch, dinner and midnight snacks. But it is worth knowing about to a lucid and well-armed market participant.
As for the gold sector, look no further than our Macrocosm picture to see why the sector cannot yet be called bullish. At best, there are better places to invest as long as stock markets and the economy are doing well and out performing gold .
But there is a long way to go to undo the negatives. We’ll leave it to promoters and obsessives to micro-manage the sector in the meantime. There is no macro signal here for a real bull phase by the important element of ‘gold vs. stock markets’.
We cover the sector in detail (including stock charts) each week along with all other major markets (including stock charts) in NFTRH. But this article is intended to give a general view of what is bullish (i.e. bull trending) and what is not… along with some markers for potential changes. Meanwhile, trading can be done long and short in either broad stocks or the gold sector. But understanding current trends is important, until said trends change.
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