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Precious Metals and the U.S. Dollar (DXY):I keep thinking that the 3% plunge in Gold (GLD) and the near 5% plunge in Silver (SLV) are a liquidation event into the end of the quarter in reaction to last week's parabolic spike in 10-year YIELD from 4.93% to 5.23%. A risk-off reflex action ahead of the start of Q4...That said, however, I also think that Wednesday's PCE Inflation report for August is the next significant headline risk (reward) for precious metals. If PCE comes in cooler than expected, then YIELD and the Dollar should moderate and the PMs should catch a bid.
In Case You Missed It…This week we will need to delve deeper into the wave counts on several instruments covered in the Flagship and Nightly services. But first, a quick update on the major equity indexes:SPX gained approximately 93 points this week, forming what can be called a doji (indecision candle) on the weekly chart, on at average volume. SPX is still in an overall sideways trend from May but it may be compressing to the upside.SPX closed slightly above the Gamma Threshold level and the 50day moving average is holding as support.
Allow me to take a minute to explain the progression of my GDX analysis. First, we are now at a 1.00 extension to the downside that MAY complete a bigger wave (2) at the .500 retracement with an (a)=(c) at the same location. That is represented by the green wave (2). BUT, we will need a CLEAR 5 wave rally through the pivot to support that.But, as long as all bounces are corrective and the pivot is respected, then this support at the .
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