Nothing has changed for me. As long as the fundamentals stay intact I am bullish. But since the gold sector came out of the gate this week still on a burner it is going from overbought to overbought and frothy. Everybody’s bullish on gold and increasingly, gold stocks.
We have eventual targets that are higher for gold and the miners. But dig the word “eventual”. Nothing goes straight up forever. The last thing I want to do is coax longer-term players out of their positions but those who would take even partial profits can be considering that now.
Daily GDX has gone vertical and is very overbought by RSI. Can it just keep getting more overbought? Stocks and markets do it all the time. But in the gold sector sentiment really does play a big role and there has been a sudden desperation to get in on this sector that just a month ago was manned by you, me and a few crickets. Just FYI. It’s really bullish out there, and now everyone knows it.