Chart Of The Day - Trend Following In Action

Today just one chart illustrating how "Trend following approach" works:

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source: Stockcharts.com

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US Stocks - Is It A Healthy Bull Market?

Although NASDAQ is making new historical highs, the market internals do not support these tops. Look at the chart below:

source: Stockcharts.com

The lower panel of the chart shows the amount of stocks establishing new 52-week highs. Note that despite the index making new all-time highs (the blue arrrow on the upper panel of the chart), the amount of stocks doing the same is rapidly going down (the red arrow).

Well, it is not a typical pattern printed by a healthy bull market...

Are We In A Bear Or Bull Market In Precious Metals?

The gold market looks like being in a typical short-term bear cycle:

The green line indicates that since middle April 2018 the gold has been in a downward trend.

However, this chart says something different:

The chart shows a popular gold market performance measure, the gold / silver ratio. To remind you, during the furious bull markets in precious metals the ratio is going up. And vice versa  - during a bear market it goes down. The message delivered by the above picture is quite simple - the precious metals market is in a bull cycle.

And the last chart:

This time the chart shows another popular performance measure, the GDX / gold ratio. Once again, during a typical bull market in precious metals GDX (or gold mining companies) outperform the gold itself. The blue up-trending line evidences that the precious metals market is in its bull cycle.

So the question is: "Are we in a bear or bull market in precious metals?"