- 1. SPDR Gold Shares (GLD) was only up 0.29% for the week, while the gold-mining stocks fund -- Market Vectors Gold Miners ETF (GDX) -- was down more than 3.5%. This strong divergence really has me concerned about the price of gold in the near term. Gold stocks generally lead gold and if they are down 10 times more than gold like last week we better watch out.
- The U.S. dollar broke out and started to rally posting a gain of 1% for the week. It is definitely weird to see gold move higher when the U.S. dollar is rising.
But I don't count my eggs before they hatch so I continue to focus on the daily and intraday chart patterns for low-risk trading opportunities.
Dow vs. NYSE New Highs Divergence -- January