A correction was going to come, it is here and as previously stated, we must now understand its nature from both macro-fundamental and technical vantage points.
Macro-fundamentally, while I can foresee scenarios out ahead in 2026 that paint the gold stock sector as “no longer special” as the play fans out to a wider commodity/resources realm, the situation is still positive.
Technically, when a correction finally would arrive it would either be in the form of a topping grind, up, down, chewing everybody up who would speculate on it. Or it would be a severe hit, a harpooning, a classic hit job that gets the bugs railing about an “attack!”.
Well, the way gold, silver and the miners have fallen out of bed, we’ve got that second thing. But let’s keep words like “attack” out of it. FOMOs chased, FOMOs are getting run. That’s what this is to this point. ‘Whoops! I bought gold for some reason and now its dropping… I gotta get rid of this crap!’
Back to AI and Bitcoin you FOMOs.
GDX is about to open at 70.63, just above its 50 day moving average, which was my primary correction target.
Silver has not dropped to the same degree…
…as the Silver/Gold ratio is actually green and holding an important level at its 50 day average. Maybe that SMA 50 is more important than that of nominal silver above.
Bottom Line
If this is the classic “hit job” or “attack” (i.e. a sharp violent pullback and running of the FOMOs) the correction could end today/this week. That is no sure thing, but I want to present parameters to watch for before I go sit in a microwave oven shortly. *
I am leaning toward the correction ending this week, prior to earnings season and FOMC.
Meanwhile, I have to decide whether or not to hold my GDX puts, which have gone from wildly unprofitable to wildly profitable, and my ZSL silver bear.
* For newer subscribers, I am in cancer treatment which is going exceedingly well.
