Gold stocks are using the stock market disturbance as an excuse to sell down and fill some gaps. As of now it’s all normal. I had been doing some profit taking (ref. Trade Log, some profits taken in broad stocks too) over the last couple days (never a bad idea, IMO) but at face value this is normal, even healthy activity in the gold stocks at this point. If a real broad correction takes hold that would be the test to see if the miners can withstand it unlike in March.
As a side note, the reflation trades are extended (ref. CDNX impaling the next resistance level and copper at its decision point, gateway or termination point). I added a bit to my anti-reflation holdings (short energy) by shorting FCX and crude oil and adding some Treasury bonds (IEF). Just an FYI on how one casino patron sees the market at this moment.
