Bill Fleckenstein had this to say about the plunge in gold and mining stocks.

Dirt On Their Hands
May 2 (King World News) – Bill Fleckenstein had this to say regarding the pounding the mining stocks have endured:  

It seems to me that the miners now trade to some degree in inverse proportion to the stock market, as if they were de facto puts. I suspect that might be because folks who are rabidly bullish on stocks really hate gold. Perhaps gold stocks get shorted, even for day trades, when the stock market is strong.

I could be completely wrong about that, but it seems like the metals complex has behaved recently as if it were simply a put on stocks. And because so few people seem to care, it is pretty easy to drive them into the dirt.

King World News note: When it comes to the metals complex, the downdraft will not be a state of permanence.

“It would be illogical to assume that all conditions remain stable.” — Spock, Star Trek

Along those lines, here is one of today’s questions and answers that will give you an idea of what the coming reversal in gold and the miners may look like.

Q: Hi Bill: Time to daydream with a fun question. Fred Hickey and I think you sometimes mention a violent move higher in miners when the worm finally turns. What exactly does/did that look like? I am new to miners and got in 5 or 6 years ago and sufficiently battered and want to think about a “happy place” for just a moment. Thanks for indulging us dreamers.

Fleck: Just a wild stab, but a 20% to 25% move in miners in just a couple weeks, followed by some pullback, then another surge, etc.

King World News note:  Patience is required during this kind of insanity in major markets because ultimately sanity will prevail, it’s just a matter of time.

***KWN has now released the powerful audio interview with Adrian Day and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.

***Also just released:  Adrian Day – Sentiment Is Incredibly Bad But This Will Trigger A Mania In The Gold Market CLICK HERE TO READ.

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