alice

NFTRH; A Pre-FOMC View of the Gold Miners

Just a quick note. As I said to my friend Scott just a few minutes ago…

“Hey Scott, it is actually pleasing to me that they are taking down the miners pre-Fed. Much preferred over the opposite. Now, with GYX/Gold, Pall/Gold etc. crapping it some things are coming in line for the gold sector.”

The point being that the Fed is in dove mode (not itself enough to move the needle for gold stocks) and some cyclical market underpinnings are under stress like the bearish-breaking Industrial Metals (GYX) and now Copper threatening the 2.85 support area.

Even PALL/Gold is looking bearish per this morning’s post.

As for the Industrial Metals well, this is not good for the cyclical risk ‘on’ crowd.

gyx gold ratio

All of which means that if the stock market eventually follows these signals into a correction the macro will be set up to portray (in hindsight) this current decline in the gold sector as a buying opportunity. One of those events where they puke the miners at the time they should be buying. That is driven IMO mainly by inflationists giving up the ship.

Of course, as things currently stand at this moment it’s all risk ‘on’ all the time for the stock bull crowd. Macro signals beneath the surface can take some time to become apparent to the average participant as Garth parties on.