PM Daily Market Commentary – 5/19/2014
Gold closed down just -0.10 to 1292.70 on moderate volume; silver was off -0.01 to 19.34 also on moderate volume. Gold rallied strongly in asia and london touching 1305 at one point, but could not hold its gains and retreated slowly back to its starting point during the NY session. Silver looked quite similar. In the end, it was a nice rally that failed.
The USD dropped modestly in european trading, but rallied back during the NY session to close down -0.04 to 80.07. The now-rising 50 MA seemed to act as support.
GDX was almost flat, closing down -0.04% on light volume; GDXJ was down -0.26% on moderate volume. Both mining groups opened up on gold's rally but then sold off, with GDXJ experiencing a bounce going into the close. Nothing changed in the larger picture – miners remain close to support, and looking bearish.
20 year treasury bonds sold off today, closing off -0.74%. Treasurys are overbought, but we will see if the 20 EMA and the 50 MA continue to act as support. For the past 5 months, the right move has been to "buy the dip" in bonds.
SPX continued its rally from Friday – it closed up +7 to 1885. Technology shares (XLK ETF) is looking much healthier, breaking out to a new closing high today. All the dotcom 2.0 stocks are still doing poorly, the biotechs are down but tracking sideways, and the homebuilders look weak; that might mean something someday, but right now, the overall average is tracking higher. VIX is at 12.42. What me, worry?