Anecdotally, I caught flack on X and SeekingAlpha (two havens for the contrary indicator herds) for daring to write a title like…
Late Innings For the Gold Stock Rally
That is a sign of the herd defending its bullish stance. There is also this, as we’ve been noting…
The situation is bullish, but has been in need of some cleaning, which it is getting. Nothing serious so far, but it could drag on for a bit. We should also realize that the larger rally could be done for now. I don’t think that is the case, but I won’t die on that hill (or any goddamn hill the markets present).
Technically, the GDX daily chart shows an unsurprising (it’s FOMC week, after all) fade, probably to at least fill the upper gap. RSI sucks (negative divergence) and MACD is questionable. The chart could easily test the uptrending 50 day moving average at 50 and fill that gap as well. Conveniently, that would test a short-term support area.
I continue to favor one more leg up in the late-stage (IMO) rally. I partially hedged positions on Wednesday and will want to be on alert to release the hedges if the view of an intact rally proves correct, as expected.
We’ll talk more in NFTRH 868.
