First of all, Happy Summer Solstice to everyone. As a person who has to walk large dogs in the morning before the squirrels wake up, I am glad to know that from here on out, days will be getting shorter. These 5 a.m. wake-ups get old after a while.
I was glad to see the one and only equity I actually want to go up in value is continuing to do so. Our buddy Qudian continues to behave itself.
As of this moment, the ES and NQ are both down a little (for a change). The NQ seems to be clinging, oddly, to the same level as its high last year. It seems drawn to that area I’ve tinted.
Looking more closely, it’s easier to see what I mean. Take note of how the NQ had been falling but then was stopped cold (yellow tint). This line is switching roles between resistance and support, and it is now behaving as the latter. This level is at 7728.25.
The ES has its own 2018 high as an obsession, although we’re on the other side of it (in other words, this line is resistance instead of support). I’ve highlighted the fact that we are subtly fading in strength from that level.
The gold bugs have been having a great time of it. I think we’ve witnessed a sea-change in the prospects for precious metals. Some “backing and filling” wouldn’t hurt their cause here.
What is decidedly in the favor of the gold bulls is the fact that the dollar seems to be in a world of hurt vis a vis the Japanese Yen. As long as these lower lows and lower highs persist, the precious metals crowd will keep smiling.