First, as 'risk on' comes back, gold is a 'risk off' play. Money has greater potential for gains out of the sector. Second with all the backing from the Fed and Federal Government, the money isn't going to help this sector. Plainly put, even with low oil prices and high gold price, and probably great earnings ahead reported, it doesn't mean the stocks must price this in. It's simple supply and demand, and the demand is going to be less. Also, one of my paid services generated a NEW sell of miners Monday, https://www.technicalindicatorindex.com/ . They aren't fully bearish yet on the sector but combined with other reasons mentioned, I am acting.
The crisis point for etf, GDX, is about 20 bucks. So unless it breaks below that in the weeks ahead, all is fine for the long term still.
But for now, I may lighten some positions in this sector, as i expect it to chop around while other stocks soar. The trade will come back on, and I will remain partially vested.
When the stochastic oscillator (the bottom graph) hits a low, I'll look to add back.
The short blue trend line is about to be broken (failed recovery), and the long blue line is the long term trend. (broken briefly in the market dump)
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