Last week there were two posts made suggesting that the Euro had topped and the US Dollar had bottomed. I still feel this way right now. As a consequence to this, gold stocks may have topped yesterday.
Ever since I turned bearish last week, gold stocks have continued to rise, but they have done so in a fashion not normally associated with a healthy bull market. The daily chart of the GDX, for example, does look worrisome to me. Please refer to the following annotations by clicking on the chart:
In addition, silver is looking weak right now. The following chart is a daily candle chart of SLV, the silver ETF:
Finally, the Australian Dollar, which is a currency very closely linked to the price of gold, looks overextended and ripe for profit taking now. I'll let this daily chart of the currency do the talking however:
So there you have it, three charts, showing three perspectives. I hope that makes sense. If you have any questions or disagreements, please write a comment below. Thanks for stopping by.