Notice I wrote “begins” in the title. Today was the first real day of regurgitation with conviction. Long-term support levels are going out the window and that is great, if you are a would-be buyer. But capitulation usually takes multi-days of this.
GDX gapped down on decent volume, is getting oversold but is in the form of a waterfall, which could come into play if this takes on a life of its own and a concern → fear → terror progression kicks in.
GDXJ is taking out the December and February lows. That should get the chart dorks lathered up. I am sure many are running DUST and JDST as we speak and that is the right play. A gold sector puke fest can be very rewarding for the speed freaks and day traders who play it.
But I prefer to be comfortable with a lot of cash, in the…
…Waiting Place. For people just waiting. I have the right positioning for me to be thinking like a predator instead of a victim. If – and it is still in the “if” stage – this is the real thing, the net paper losses (a few are still profitable) on those positions will be history with patience.
Right now the most important thing to watch is whether or not the US stock market is going to cough up a lung. Confidence must come out of stocks if the gold sector is going to make a real long-term buy signal.
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