With the stock market mired in a bit of uncertainty, after last week’s run, it was the gold ETFs who brightened the day.
As the chart shows (courtesy of MarketWatch.com), the major market ETFs lacked direction and essentially went nowhere. Follow through buying from last week was non-existent as exuberance seemed to wane.
None of today’s news reports supported the upside as Moody’s cut Portugal’s debt rating to junk. The U.S. debt ceiling remained in the foreground along with new concerns about the health of China’s banking system. A worse than expected report on factory orders for May increased the sense of uncertainty.
That turned out to be the driver to push the precious metals higher, as gold reclaimed its psychologically important $1,500 level.
As I mentioned last Friday, I had to estimate the numbers for the Trend Tracking Indexes (TTIs), as some data were not available. Here are the updated numbers as of today:
Domestic TTI: +3.96%
International TTI: +2.01%
I am still giving the International TTI a little wiggle room before issuing a new ‘Buy’ for that area. The reason is obvious in that we had just received a ‘Sell’ the middle of June, and I am trying to avoid a whip-saw signal.