re: ["Do you think that the gold sector will sell off with a
general equities dump? How deep do you see gold correcting?
I had 1125 and 1075 as potential targets. Thanks"]
Of course.
The "when, not if" correction in the broad market
rally has been the #1 caveat to this rally
since the DOW prop job began last March.
It was a matter of what you chose to own.
The HUI gold bugs index gave 3 x outperformance to the DOW,
and near 2 x the gains of gold on this move.
A quick 10%ish correction in the broad market here would be
"the best thing that could possibly happen"
for the gold sector.
The metals will obviously hold up better than the shares,
and the shares will be disproportionately sold off to
the broad market on any correction, and that = opportunity.
So we're about to get a helluva buying/trading opp here.
I'll have a long piece on the gold sector and some charts
up on my blog Friday, or Saturday.
Silver was on fire yesterday, up 2.2%+ and now today it's
down -4%?
What fundamentally changed for the metals, or the US dollar,
in the last 24 hours - other than manic swings by traders
with everything being sold off on a -200 point day?
I bought some March-May call options on pm stocks on the
pullback to HUI 420, as I still want to hold high cash
positions until we get the correction in the broad market.
We're re-testing support of the present HUI trading channel,
with HUI 377 the next level of support that could easily be
hit, if a correction in the broad market continues.
I think you have to be patient here and wait and see if
this sell off in the broad markets turns into a meaningful
correction.
A great place to begin to sell puts, scaling in with an
eye on HUI 377ish as next support. And given the manic
swings, not a bad place to do a little day trading, with
tight stops.
PM stocks are getting very cheap to the metals again,
and the stocks now have significant upside to prior highs.
CDE now has a 40%ish upside to it's recent highs.
GSS is looking awfully cheap near $3 again.
HL looking over sold with still $17+ silver and now
being debt free.
AEM is at a significant discount from it's prior highs.
SSRI also at a significant discount from it's prior highs.
All these stocks are entering very attractive risk:reward
price levels given present metal prices.
Once again, getting a broad market correction out of the way
here, is the single best thing that can happen for pm bulls.
SOTB |
