Rok-n-Dan's Market and Sector Analysis with Fidelity Select Sector Funds

Dan Caldwell

7/24/17: Have been getting a lot of emails re: gold/silver mining. The sector is oversold and IMO is consolidating getting ready for a fall seasonal rally. COT gold and silver futures short interest is at a level last seen in Dec. 2015, from which gold rallied 30% and PM mining shares doubled or more. Also, in terms of PM mining demand/supply, recently released data shows that over the past 3 yrs. the US has been exporting about 30% more gold than it imports, scraps, and mines, and this deficit cannot continue. HOWEVER - markets can remain overbought (Gold Miners Bullish % Index, p.3) and oversold for extended periods, so stay away from margin and be patient. On the plus side the US dollar is weakening (p.3) and my FED INFLATION/DEFLATION chart (bottom, p.3) is also weakening suggesting that the economy is returning to deflationary mode, therefore the FED is likely to continue to be accommodative, good for gold and silver. Also, keep in mind that 35% of mining expense is the cost of fuel, that's been dropping, and those costs saving move straight to the miner's bottom line.

aub a Gold & Silver Index - Philadelphia ($XAU)

aub a Gold & Silver Index - Philadelphia ($XAU)

aub Gold Bugs / 10 Year Treasury Note Yield ($HUI:$TNX)

aub1 - AMEX Gold Bugs Index ($hui)

aub1 Oil : Gold Ratio Chart

aubc Gold - Continuous Contract (EOD)/Market Vectors-Rupee/USD ETN ($GOLD:INR)

aubc Gold / Euro Ratio ($gold:$xeu)

5/22/08 Gold as priced in Euros is back above 50 DMA which is bullish ST for gold.

aubc Gold Price in Chinese Renminbi/ USD ETN ($GOLD:CNY)

aubd Gold & Silver Index Monthly ($XAU)

auc 1b 2 CDE

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