The markets were mixed this week, with most asset classes lower. The biggest exception was gold stocks, which continued their advance for a second week.
Bitcoin gave back some of last week's gain, dropping 1.6% to close just below 2.9 g. Trading volume continued very light throughout the week, but picked up over the weekend. Although prices have been fairly stable for the last few weeks, you should expect more volatility as volume increases.
The Japanese Yen was the strongest of all the currencies, gaining 0.9%, with the Euro in second place, rising 0.5% to close at 29 mg. The USD was lower by 0.3% to 22.3 mg, leaving it 38.9% above it's half-life curve – unchanged from last week.
Bonds were lower, with short term SHY dropping 0.4%, while the long term TLT fell 2.3% to close at 2.55 g. TLT is now sitting right on support/resistance at 2.55 g after touching 2.53 on Thursday. This level has been pivotal many times over the last 5 years. Stay tuned for more exciting bond action!
Stocks were mostly lower, led by the Nikkei, which lost 4.9% for the second straight week to close at 3.04 g. The HUI Gold Bugs Index was the only rising equity class again this week, gaining 7.9% to close at 6.12 g – its best showing in the last 5 weeks. Like long bonds, the HUI sits at a crucial level. It will be interesting to see whether gold stocks can continue to rally, or if they will resume dropping towards their old lows.