Michael Oliver, founder of Momentum Structural Analysis, joins me to reviews how is seeing the setup based on technical momentum factors in the US general equities, gold, silver, precious metals stocks, oil and energy stocks, uranium and uranium stocks, agricultural commodities and grains, and the overall commodities sector.
He points out that the Fed party we’ve seen in the recent bounce higher in the S&P 500 and Nasdaq is not confirmed by the underlying market breadth of the rest of the market this year, and on a momentum basis is not confirming a big leg higher and a peaking out in the near-term of momentum.
With regards to gold, he postulates that the reason gold has been so resolute in returning to it’s highs, compared to most other asset classes, is that it is picking up on the degradation of the value of the money unit. Michael also points out that on a momentum basis that silver has crossed a key level just in the last week. Additionally, the recent outperformance of sector leaders Newmont and Barrick over the general ETFs is illustrative of more generalists getting positioned in the gold stocks.
While Michael continues to see strength in the overall commodities sector relative other asset classes, he expects the monetary metals of gold and silver, the grains, and uranium to continue to have more upside relative to other areas.
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