The Miners Lead a Rising Tide

By: Erik Swarts | Tue, Jul 29, 2014
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The asset relationships we have focused on over the past several weeks, is showing patterned replication in its leading proxy (precious metals miners) - just as the other lagging sectors look to begin making their respective pivots.

While those panning silver and gold have viewed the early July highs as a bearish echo of the Q1 interim top, we have approached the recent consolidation trend as commensurate with the move out of the cyclical low last December.

With respect to the kinetic asset sequence of the broader macro story, precious metals have led the moves in long-term Treasuries - which eventually have led a rising tide in a larger basket of commodities.

GDX Daily Chart
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SILVER Daily Chart
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GDX Chart
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SILVER Chart
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GOLD Chart
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Silver Chart
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For further reading on this concept - see some of our more recent notes:

The Second Stage
The Sweet Spot
Follow The Yellow Brick Road

 


 

Erik Swarts

Author: Erik Swarts

Erik Swarts
Market Anthropology

Although I am an active trader, I have always taken a broad perspective when approaching the markets. I respect the Big Picture and attempt to place each piece of information within its appropriate context and timeframe. I have found that without this approach, there is very little understanding of ones expectations in the market and an endless potential for risk.

I am not a stock picker - but trade the broader market itself in varying timeframes. I want to know which way the prevailing wind is blowing, where the doldrums can be expected and where the shoals will likely rise. I will not claim to know which vessel is the fastest or most comfortable for passage - but I can read the charts and know the risks.

I am not a salesperson for the market and its many wares. I observe it, contextualize its moving parts - both visible and discrete - and interpret.

I practice Market Anthropology - Welcome to my notes.

Erik Swarts is not a registered investment advisor. Under no circumstances should any content be used or interpreted as a recommendation for any investment, trade or approach to the markets. Trading and investing can be hazardous to your wealth. Any investment decisions must in all cases be made by the reader or by his or her registered investment advisor. This is strictly for educational and informational purposes only. All opinions expressed by Mr. Swarts are subject to change without notice, and the reader should always obtain current information and perform their own due diligence before making any investment or trading decision.

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TRUE MONEY SUPPLY

Source: The Contrarian Take http://blogs.forbes.com/michaelpollaro/
austrian-money-supply/