What no one's watching: Gold miners (GDX) ran +15.6% in 5 sessions, while gold rose only +3.7%.
→ It's the 16th run like this since 2006; in 8 of the previous 15, the price was lower a month later
→ Up from the Oct 30 low of $77.09 to $91.46, still 21% below the February peak
I think miners outpacing gold 4x shows the crowd is playing gold's bottom with leverage. Worst case: if gold drops back below $4,000, the leverage in miners works in reverse and the $77 low is back in play; it's on my radar.
#Stocks #markets
Watching: $GDX $GLD
→ It's the 16th run like this since 2006; in 8 of the previous 15, the price was lower a month later
→ Up from the Oct 30 low of $77.09 to $91.46, still 21% below the February peak
I think miners outpacing gold 4x shows the crowd is playing gold's bottom with leverage. Worst case: if gold drops back below $4,000, the leverage in miners works in reverse and the $77 low is back in play; it's on my radar.
#Stocks #markets
Watching: $GDX $GLD
