Gold stocks are not responding well to the deflationary whiff in the air and I continue to think that is because they got caught up with the inflation crowd (gold is silver is copper is tin is oil is hogs is ‘resources’). For a real sector buy, it needs to be apart from these items and counter-cyclical.
Anyway, none of that matters in the here and now. But the technicals do. Here are GDX and GDXJ hinting a daily chart breakdown, in-day. I say “hinting at” because of the potential for a whipsaw head fake as with any in-day move.
If this is real a realistic downside target is 21 +/- or a test of the 2018 lows.
GDXJ could target 30.50 +/- and a test of the lows.
The HUI/Gold and Silver/Gold ratios are intact but getting dinged, FYI.
I don’t want to add to the hysterics of the news cycle, so I am just going to report what the charts say now. As it stands in-day in the absence of any whipsaw back upward, GDX & GDXJ are losing a daily trend line that could target a test of the lows. HUI/Gold and Silver/Gold are intact but under pressure.
