01Aug11:36 amEST

Kirkland is Not Just Costco's House Brand, Ya Know

Equities are snapping back with some authority this morning, as hope for a second rate cut now seems to have more viability than it did yesterday afternoon. Still, I am a bit skeptical of the bounce, pending the close and daily volume due to some recent warning signs with respect to upticks in sell volume and a few examples of the market selling various "good news" of late. Of course, seeing a name like TWLO rally back hard after initially flashing red from earnings does not hurt the bull case. But I suspect August may bring some volatility yet. 

In the meantime, as we previously discussed here and with Members, I am more intrigued by the gold miners finding buying this morning. Again, if the Fed truly is trapped from raising rates anytime soon, gold ought to flourish especially once the U.S. Dollar rally runs out of steam. As of now, the Dollar looks exhausted in the short-term as it extended higher this week. 

With respect to individual miners, plenty of the top performers have similar charts. But Kirkland Gold, no relation to Costco's house brand, is a fairly popular one these days amongst social media gold bugs. 

On the updated KL daily chart, below, note the sharp bounce today off the stock's 50-day moving average (arrows, dark blue line), which was tested here for the first time since May. That is exactly the reaction gold bugs want to see on this dip, provided that the closes today and this week (tomorrow) are respectable. 

The Market Was Not Looking f... The Fed is Trapped; Long Liv...

 
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