Tariffs are going into effect, and what worked before doesn't anymore. Unless we come out with a surprise deal (news quotes are supporting that), it's going to be the second correction wave that the bears have been growling about since January.
Materials are a good defensive sector, and gold miners particularly. Gold has a tendency to rise in market corrections due to the precious metal being a holder of value, and Kirkland Lake is a good play from both technicals and fundamentals. They've beat earnings expectations the last 4 quarters, and their technicals are indicating that they're done consolidating and ready to start climbing again. MACD just broke positive with a strongly climbing histogram. RSI shows them having just broke out of oversold territory and investors are beginning the buying spree. Money flow and rising volume confirm that the big money players are putting cash in, and the quick short interest rise with volume earlier this week got mostly squeezed out. ADX is not showing trendedness yet, but with DM+ rising quickly above a DM- that just fell below ADX shows that a trend may be in the making.
Materials are a good defensive sector, and gold miners particularly. Gold has a tendency to rise in market corrections due to the precious metal being a holder of value, and Kirkland Lake is a good play from both technicals and fundamentals. They've beat earnings expectations the last 4 quarters, and their technicals are indicating that they're done consolidating and ready to start climbing again. MACD just broke positive with a strongly climbing histogram. RSI shows them having just broke out of oversold territory and investors are beginning the buying spree. Money flow and rising volume confirm that the big money players are putting cash in, and the quick short interest rise with volume earlier this week got mostly squeezed out. ADX is not showing trendedness yet, but with DM+ rising quickly above a DM- that just fell below ADX shows that a trend may be in the making.
Trade active:
This is my biggest winner for the current trading conditions. I've gone long in a few other precious metals stocks, but I'm glad I had KL today when the parts of my portfolio from the DOW30 and S&P500 stopped out this morning.
