Bad JuJu in the market today...
Not trying to make a headline prediction, just verbalizing a gut feeling...
Today, felt like a July 2008-esque turnning point.
Naz down -3.5 %, S&P Small Cap index down -3%, DOW down 500+ and commodities
turned red.
Gold and mining stocks needed to bounce hard off a technical double bottom
from the Nov-Dec tax loss selling season lows and they did Monday, but now
have given that all back on fairly heavy volume selling today...
GDX ETF was down -4% on volume that was 60% above average daily volume.
Not "wash out" capitulation volume, but the crack just before the collapse type of volume.
That is NOT good.
With all the inflation indicators flashing positive...
With all the debt, deficits and government spending...
With mining companies zeroing out debt, and printing cash at near record levels...
For the sector to sell off here to lows below tax loss selling levels in THIS environment
and at these valuations?
... not good.
This is either turning into one of THE GREAT buying opps because of the valuations here
against a very positive fundamental backdrop for gold & silver...
Or, the GBOAT is getting ready to blow...
Which fundamentally - it should have done a while ago.
I just wish it would get on with it already.
It almost feels like tomorrow could bring one of those lock-limit down days in the broad market
where the meltdown begins...
One of those days where Mark Spitznagel and Taleb make $1 billion in a single day again...
I still say, that's the risk for mining shares - getting sold off with everything else as the bottom
drops out of the mother of all bubbles.
Everyone's circumstances are different...
I'm too old now to give back a big chunk or to gamble putting my cash all back to work,
betting on a bottom.
Sitting on a chunk of cash, but not adding ANYTHING LONG HERE - maybe some puts on
the QQQ's is it.
I guess the positive way to look at the GBOAT meltdown is maybe we get one last and
final shot at buying a shit-ton of physical silver sub $20.
My .02 cents.
SOTB
PS: My "gut feeling" has NEVER been worse about nearly everything.
It's literally pegged in the red zone.
Sorry, to be so damn negative. That's why I took a couple of days to just get out and about,
only that just made things worse.
Gotta call 'em like I see 'em.
...bad Ju Ju all around. |
