The Gold miners spiked up with the Gold contract, but again followed the indexes down in today's sell off. I have not seen this level of divergence from gold by the miners in the 3 years I have been following them. What this tells me is that people are flattening all equity positions in droves and the bears have come out to raid the picnic.
One or two more days of red indexes and the aggressive Mutual Funds will get more orders to go flat , adding to the sell off.
Gold is still the safe haven but the miners have become a question mark. Why would an individual short the miners when Gold has so much support with the Fed and IMF diluting world currencies.
Please comment
Comments
GCEventsmoveGDX
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For trading GDX as a proxy for Gold Futures, a long term expectation for Gold value will do you no good. There are good arguments for Gold to be $900.00 or $1,800. Look at today's trading action, a long position would have gone flat on the first red candle after the pop up. There is no way way that I would watch as much as 900.00 wash away. Why did the miners diverge to such a great extent? That is the question. I would expect a rebound in the morning as gold continues up, actually we are in a good value area. Thanks for the comments. Watch those futures.
CosmicDust
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Might be just technical, and pressure from broad market sold off. GDX sits on support line right now, and I would be concerned if that support line broke. We will see if there is a GDX rebound tomorrow.
osci
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in just 10 days Gold gained 45 usd. at least a second touch of the 61,8% should happen. the upward momentum is way to strong, this is no real consolodiation. pl Keep us informed about your view as a Long term follower!