Utilities Rising & Transporters Sinking - Sector Rotation Is Providing Clues

Historically, investors gravitate toward more defensive and commodity focused sectors, such as precious metals, energy, commodities, and utilities, in late cycle bull markets. Recently, the stock market is beginning to show us signs that the bull market may be coming to an end. 

Commodities such as energy, grains, and precious metals have all experienced nice rallies. Price action also confirms money flow coming out of transports and into utilities....Continue Reading Here.

Waiting For GLD To Make New Highs - Gold Rally Is Still Intact

The calm of the last 3 weeks has resulted in a risk on environment. This, in turn, has led to a nice recovery rally in stocks. For the time being, volatility has subsided. However, we believe there are many underlying market risks that can still resurface without any warning.

From late 2015 to August 2020, the price of gold doubled, going from approximately $1040 to $2080. Gold then experienced a profit taking $400 pullback. Gold’s rally over the past 12 months failed to break through its $2080 price level. After retreating back to $200, gold seems to have found support at the $1900 level.

In reviewing the following spot gold chart, it appears we have broken out of an accumulation phase and seem to be preparing to move above the $2080 high.....Continue Reading Here.