The aggressive move today out of risk off and into risk on assets
Ed Moya, Senior Market Analyst at OANDA joins me today to address the aggressive move today out of risk off assets (bonds and gold) into risk on assets (US markets). With fears of the Coronavirus diminishing traders are showing they are more than willing to keep reading from the playbook that says throw money into US stocks.
Click here to visit the OANADA website to read over Ed’s daily note.
We also see the risk-on assets within the gold space outperforming: SLV is down less than half as much as GLD and the miners are providing terrible leverage to the metals today (which is obviously a show of strength since we’re talking about downside leverage). Additionally, the senior gold miners are down more than the mid-tier and junior gold miners.
Maybe now the miners can finally transition into their usual leadership role. If so, gold can continue to struggle here while the miners turn up.
I doubt that SPY:GDX is going much higher but we’ll see…
https://stockcharts.com/h-sc/ui?s=SPY%3AGDX&p=D&yr=1&mn=8&dy=0&id=p44102121462&a=717670314
Look what happened to the number of infections:
wuflu.live