Originally published by Chamber of Merchants
I’ll make this very quick.
If you read the Weekend Report, you may have been mentally prepared for what may occur today.
The gold mining sector in the USA was sold off heavily.
Market Vectors Gold Miners (AX:GDX) has dropped more than 5%:
VanEck Vectors Junior Gold Miners (NYSE:GDXJ) dropped almost 10%:
Direxion Daily Junior Gold Miners Bull 3X Shares (NYSE:JNUG) dropped almost 30%:
Conclusion:
The attack on the gold mining sector may cause a panic sell. I’ve been waiting for a great opportunity to buy and the next few days might be that opportunity.
If you look at any index above on a 5 minute chart, you would observe that the sell off began on the open and simply continued all the way through to the end of the market getting worse as the day progressed. If a similar pattern occurs on the ASX, it would mean that cutting a small loss at the open would be preferable to riding out till the end of the day which could be substantially lower.
Gold is still above $1250 USD and above $1630 AUD but… sentiment drives cycles and the sentiment just became bearish.
Think Better. Trade Better.
the Merchant