Wednesday, June 30, 2010

TLT . . Again

On a day when many of the big caps saw long term support violated TLT was once again the safe haven of choice on Tuesday. After struggling a bit GLD also joined the party, but it's near term prospects look more neutral than positive.
I've adjusted the Rotator components, eliminating NEM and adding GDX, which is the Market Vectors Gold Miners ETF, and which reflects a somewhat wider spectrum of the gold producers than NEM by itself. A quick look at the Gold Rotator shows GLD as the only component that closed positive on Tuesday. This is a rather odd situation reflecting the attractiveness of bullion, but not the underlying companies prospecting and extracting the gold. TLT's chart suggests the potential for more upside on the near term. It is currently chugging along at the mean of the LR30 and not looking overbought. The midpanel technicals are upslope in unison and, while the lower panel technicals are getting a bit toppy, there's scant indication of an imminent reversal.

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