Loading ...Maybe I am a delusional PM long…
OK, scratch that, I AM a delusional long. That being said I think we are making a major low here in the PM miners and metals, and especially in the miners vs US stocks. I know, famous last words. I thought July 19th had marked the bottom, but we got an undercut low with a very nice momentum divergence–the miners especially, are set up to rally and rally hard IMO.
If they fail here, which I am not expecting but concede could occur, then I expect GDX and the HUI to test their 200 WMAs on the next plunge.
Macro and technical signs to me are signaling lower lows in the general stock market (possible bear market entry). If so initial leg down could be violent. If so I expect it to take PM stocks with it. This could set them up for a bear market bottom. My objectives are still lower despite positive fundamentals.
The Fed has your back.
Actually, it would be great if we could see the Fed Governors’ stock trades in real time instead of after the fact.
For sure
I disagree with Plunger on the general market technicals AT THIS JUNCTURE. (But this move down isn’t done yet either.)
But I could be wrong on that, and for me its a close call on timing that’s measured in terms of a few months at most.
But his concerns are legitimate and if I’m right, they would merely express themselves later toward EOY. So I can see this BMR for PMs that’s setting up, feeding into that deadly reversal.
As I have posted recently, 1)The general stock market peaked.Even if the FED goes more doveish it will only lead to filling the gaps from Monday’s selloff.2)Gold and silver bottomed. They are going higher despite what happens to the general stock market. This last leg down in the metals and miners was them being leaders to the downside as opposed to following the stock market like in March 2020. Now that everyone is conditioned to everything falling together, the institutional money will be coming out of the stock market and going into metals and the miners. In hindsight today’s FED action(non action) will be considered the catatlyst but in reality the charts show the trends have begun already.