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PPR - Pocket Pivots Pepper the Precious Metals - GLD, SLV, NEM, GOLD

Precious metals and precious metals stocks all swung to the upside today following the Fed announcement today. In most, if not all, cases the stocks and the metals ETFs all reversed to the upside after moving lower earlier in the day, staging outside reversal days on their daily price/volume charts. Both the SPDR Gold Trust (GLD), not shown, and the iShares Silver Trust (SLV), shown below on a daily chart, flipped to the upside after finding support right above their 10-day moving averages for a pocket pivot continuation buy point in each.

Newmont Mining (NEM), the "big stock" in the precious metals sector and the one likely favored by institutional investors, also flipped to the upside after finding support right at its 10-day moving average which also coincided with a pullback to its initial breakout point of six days ago, as we see on the daily chart below.

We consider NEM and Randgold Resources (GOLD) to be among the higher-quality gold stocks, and GOLD also came through with a pocket pivot type of continuation move. In this case, GOLD did not touch its 10-day moving average on the pullback this morning, instead holding well above the 10-day line in an extended position as we see in the daily chart of GOLD below. However, this can be viewed as a sign of strength in that it begrudgingly refused to pull all the way down to the 10-day moving average.

For the most part, precious metals stocks have remained somewhat choppy, generally failing to follow-up on strength with more strength. We see the potential here, however, for a sustained move in the metals and the stocks in a continued market rally phase. Precious metals stocks have had their moments in stock market history, although they have been far and few between. The real question remains: will we see another window of opportunity open in these stocks similar to the big move they had in 1987? Possibly, and so at the very least we tend to think that investors should be positioned somewhere in this area, as long as this possibility exists. 

This information is provided by MoKa Investors, LLC DBA Virtue of Selfish Investing (VoSI) is issued solely for informational purposes and does not constitute an offer to sell or a solicitation of an offer to buy securities. Information contained herein is based on sources which we believe to be reliable but is not guaranteed by us as being accurate and does not purport to be a complete statement or summary of available data. VoSI reports are intended to alert VoSI members to technical developments in certain securities that may or may not be actionable, only, and are not intended as recommendations. Past performance is not a guarantee, nor is it necessarily indicative, of future results. Opinions expressed herein are statements of our judgment as of the publication date and are subject to change without notice. Entities including but not limited to VoSI, its members, officers, directors, employees, customers, agents, and affiliates may have a position, long or short, in the securities referred to herein, and/or other related securities, and may increase or decrease such position or take a contra position. Additional information is available upon written request. This publication is for clients of Virtue of Selfish Investing. Reproduction without written permission is strictly prohibited and will be prosecuted to the full extent of the law. ©2022 MoKa Investors, LLC DBA Virtue of Selfish Investing. All rights reserved.
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