Blue Chip Gold Stocks HM, NEM, ASA, ABX, PDG Message Board

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Gold/Mining/Energy : Blue Chip Gold Stocks HM, NEM, ASA, ABX, PDG

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To: cmg who wrote (43337)	5/3/2013 3:26:00 PM
From: Rarebird	2 Recommendations Read Replies (1) of 48092

I don't see this as a problem for gold miners, merely a fact of the behavior of the markets. Momentum players won't buy anything until it has already gained 20%-30%, but the real issue is the swing traders who are looking for trend changes. As long as the S&P 500 is strong and defensive assets aren't in clear downtrends, very few of those active traders will shift out of high-yielding names or SPY to participate in any other kinds of trades including gold mining shares. Therefore, the S&P 500 has to mostly move sideways instead of higher, and defensive equities have to establish clear patterns of lower highs, before gold mining shares are likely to rebound significantly. This is providing the opportunity for additional current accumulation into pullbacks.

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