Many No Fold 'em Gold Players These Days

Headed into the weekend, it is interesting to see both gold and silver flip back to red after they had staged gaps higher this morning in light of the soft retail sales figure. 

I am still looking at most XME components (precious and non-precious miners, steels, materials, etc.) as more likely than not to consolidate into Labor Day before potentially offering up lower risk fresh money long entry points. While I had been open to a further rally earlier this week, the reactions by the market to secondary offerings for both CLF and X had me back to my original thesis of a late-summer vacation for the hot miners in 2016. 

But that need not be a very bearish development. In fact, it can be seen as necessary and healthy, so long as you are now riding them down the whole way, hoping for a bottom. For as we know, hope is not part of a trading process nor investing strategy. 

Instead, being willing to fold gold and the miners in the short-term may be the best play here, looking for a better spot to become aggressive. Also note how gold and silver are red here even as the U.S. Dollar is weak, too, which to me signified that metals truly are not yet ready for another imminent leg higher. 

Although trading exclusively off seasonality is often a tough proposition, September can be a good month for gold. So while we will still look at a few under-the-radar miners which have yet to really take off for Members in the interest of due diligence, overall I am leaning towards that pause/pullback into Labor Day camp. 

We will also be looking avross all markets with fresh ideas, as usual. 

Have a great weekend, and I will see you there!