McGlone: Overall, it can build quite a few more bullish scenarios for the precious metals, certainly gold and silver, for a stored value in an environment in which weve recently had a pretty substantial correction. Our advice is that correction was within the bullish trend, which is really being supported by the same things that supported it earlier. HAI: What brought the gold market to the unprecedented highs of two years ago? McGlone: Sovereign debt issues got the market to those highs. The Fed and the S&P downgraded U.S. debt just four days after Congress signed the Budget Control Act in August 2011.
AuRico Gold (NYSE: AUQ) and IAMGold (NYSE: IAM) also touched on the issues of costs and balance sheet improvements at the forum, indicating that gold miners may realize investors are skittish about costs with gold futures laboring around $1,300 an ounce. Those three stocks combine for about 6% of GDXs weight. [ Gold’s Bounce Inches Some Miners Back to Profitability ] Market Vectors Gold Miners ETF ETF Trends editorial team contributed to this post. Tom Lydons clients own shares of GLD.
ETF Talk: Export-Driven South Korea May Thrive with Global Upturn
The countrys resilience during the 2008 global economic slump stemmed from internal demand in this high-income, developed economy of more than 50 million people. While EWY has slipped a bit in 2013, last years gain was 3.9%. The etf trading software yield, for investors interested in additional income, is 0.63%. This yield reflects South Koreas improving export picture as some of its big trading partners Japan, the United States, and Europe are recovering, as well.
Friday’s ETF Chart To Watch: XLY In Spotlight Amid Consumer Data Frenzy
This sector ETF has been steadily climbing within a fairly well-defined, upward-sloping channel since rebounding off its 200-day moving average (yellow line) in November of 2012; since then, XLY has endured a number of fairly predicable corrections after each instance of grinding along its upper-resistance boundary for an extended period of time. Likewise, this ETF has been able to rebound off its lower-support boundary on a number of instances as well, although its two most recent corrections suggest otherwise. Notice how in late June and late August of this year XLY sank underneath its lower-support boundary, although it still managed to resume its uptrend in the weeks following[see How To Take Profits And Cut Losses When Trading ETFs ]. Click to Enlarge With XLY losing steam well before it neared its upper-resistance boundary this time around, we feel that the longer-term channel at hand needs adjusting; more specifically, the upper-resistance boundary needs to be lowered seeing as how the recent rally was weaker than the rebound seen in July, and the one before that in May. Despite the concerns over its trading channel, XLY is still in a very strong uptrend, and as such, we do not advise conservative investors to take on short positions here[see How To Be A Better Bear: Short Selling vs.