As you know, the gold miners have been the poorest performing sector in the market over the past six months or so.
With recent action in the general market becoming choppy, it appears the miners are finally getting just a little interest.
Despite horrible fundamentals in the economy, if one cares to dig into the statistics, the S&P and Dow have rocketed upward. Now that earnings misses are becoming more common and guidance down forward looking quarters is increasing, it appears the general market is running out of steam.
In the short term, I expect a marginal push up in gold stocks, where the will meet a resistance level and then possibly fall back to fill a gap below.
If this scenario plays out and miners form a higher low, at that point we should finally see a turnaround.
Longer term, unless something blows up in Europe, our favorite precious metal may meander about sideways this summer before picking up steam this fall. That is the point where the gold miners may truly get some traction.
Let's see how the next few days play out.
With recent action in the general market becoming choppy, it appears the miners are finally getting just a little interest.
Despite horrible fundamentals in the economy, if one cares to dig into the statistics, the S&P and Dow have rocketed upward. Now that earnings misses are becoming more common and guidance down forward looking quarters is increasing, it appears the general market is running out of steam.
In the short term, I expect a marginal push up in gold stocks, where the will meet a resistance level and then possibly fall back to fill a gap below.
If this scenario plays out and miners form a higher low, at that point we should finally see a turnaround.
Longer term, unless something blows up in Europe, our favorite precious metal may meander about sideways this summer before picking up steam this fall. That is the point where the gold miners may truly get some traction.
Let's see how the next few days play out.
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