Michael Oliver – Technical Momentum Setup In US Equities, Gold, GDX, Silver, SIL, Copper, Grains, and Oil

The KE Report

Michael Oliver, founder of Momentum Structural Analysis, joins me to share how he sees the technical momentum setup in the US general equities, gold, precious metals stocks via GDX, silver, SIL, copper, grains, and oil.

We start off getting the nuances and difference in what the pricing chart in the S&P 500 or Nasdaq was showing coming into this month versus the divergence in them momentum framework. Michael noted that as the tech giants continue rolling over, having such a significant presence in the weighted equity indexes, that it is likely signaling a more protracted bear market in US equities, after coming to the end of such a record bull market in length and amplitude.

We then shifted over to his technical outlook on gold, and the gold stocks; where Michael postulates that when the US general equities and bonds do keep rolling over, that a portion of investors will rotate funds into gold, the gold stocks, and the commodities. In addition to remaining constructive on gold, Michael points out that the setup in GDX and the gold equities are signaling a breakout versus gold, and the same is true for the technical setup in silver, the SIL ETF, and silver stocks.

We then move through the overall commodities sector, noting the recent strength in copper and the copper stocks, other base metals trending higher, and also some positive momentum in the agricultural commodities and grains complex. Michael sees a more favorable setup in wheat, corn, and beans than many are anticipating, and could see them becoming more important to the commodity complex indexes, than even oil or the energy stocks on a percentage move higher basis. He believes the second major upleg in commodities has begun.

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