Week 18 Commodities Trending and Performance

I remain long the precious metals. It can be a good hedge against the equity markets if these markets go down. However, these precious metals are not known to go straight up or straight down. So, my approach remains to trade them.

Trending Heat Map

Note: The changes reflected are from Tuesday close of business and reflects the last 3 days of trading.

Good to see (for me at least) that GLD is back to being perfectly bullish. Hopefully GDX will follow through as well. And then SLV. I added SIL (Silver Miners) to the list that I track primarily to see variances between the performance of the metal and the miners. I have seen Gold Miners perform better than the metal itself in most cases.

The US Dollar turned back to trending perfectly bearish again. It had shown some signs of recovery but seems like it was short-lived. At least for now.

Performance

I have no idea why SLV is down (albeit small) when SIL is up +2.21% for May so far. And for April it is the reverse: SLV is up +4% while SIL is down -4%. For the year and 6 months they are closely aligned. But I see the big divergence again when measured for the trailing 1 year.

For now, the US Dollar is not doing well. So, sticking with precious metals seems like a good idea. Also, the trending and returns for precious metals have been good. Also, so far, the precious metals are keeping at pace with the S&P 500. It is still very early in May, but there is small divergence that can be seen.

I remain long GLD, GDX and SLV and will continue to hold them for now. I also have GDXU in my retirement account.