GARY TALKS GOLD AND FINANCIALS

GK 8-21-14

Gold vs. Financials

TRANSCRIPT

GARY: Gold and gold stocks are breaking down. Big financials are turning up, some of them coming out of range. It is as simple as that. If this continues…IF this continues, should be good for markets. equation. When you have a chance, here are a few things to look at and I am going to be brief. Put up the GLD, it hasn’t completely broken down but you can see it broke a little bit of support today. The GDX looked to be rolling over and then you have some individual names, AEM breaks the 50 day moving average today on volume. FNV, these are the stronger names, breaks the 50 dma on volume, GG breaks the 50 dma. On the other end of the spectrum, Citigroup moves above its six month range today on about 1.5 times average volume. Bank of America does about a four to five month move above range on almost three times volume. JP Morgan coming up to the top of range somewhat, and if you look at the XLF and this is where I am a little perplexed, the XLF broke into new high ground. This is the financial select sector index. I still can’t find financials at new highs but yet the XLF is at new highs so whatever the makeup is, they got a few things in there that are helping out. That’s it. One group going one way another group going another way and you know the motto here, not much bad happens if financials get a leg to the upside. If anything changes we will let you know.