Market Update 16 Nov 2012 – Bitcoin up, Gold Stocks down


This was a good week for most asset classes, with currencies and bonds all higher, stocks mixed, and commodities all higher except for coffee, which made a new all-time low of 26.3 mg/lb on Tuesday, but rallied to finish the week down 0.3% at 26.7 mg/lb.

Bitcoin was in a league of its own this week, rising 7% to close at 208mg. The EUR was the strongest conventional currency, up 1.5%, followed by the USD which rose 1.4%.  The JPY was the weakest, gaining only 0.2% for the week.

Treasury Bonds were strong, with the SHY gaining 1.5%, a bit more than the underlying USD, and the longer term TLT advancing 1.8% to close at 2.29 g.  TLT is holding well above its 200 day moving average, and continuing to rise back into its old trading channel.  A bounce off the 200 day average, testing it as support, might make a good entry point on the long side.

Stocks were mixed, with the Dow Jones Industrials down 0.4%, the S&P 500 unchanged, and the Nikkei Index up 3.3%.  The big loser this week was the HUI Gold Bugs Index, which fell 7.1% to close at 8.00 g, punching decisively through its 200 day moving average, and approaching its 7.5 g low for the year.

Coffee was the only falling commodity. Cotton was the leader, rising 6% to close at 13.2 mg/lb, followed by crude oil, which was up 2.4%.  Silver and copper rose 1.8% and 1.7% respectively. 

HUI priced in gold

Table of prices in gold for week ending 11/16/2012

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