Today the GDX Gold Miners Index hit a 3-month, plus a look at the stock market action, gold, silver and silver miners.
But first, a quick note about the gold sector:
“Gold rush. The NYSE Arca Gold Miners index (upon which the popular GDX fund is based) closed at a 3-month high while still below its 200- day average. It has done this 14 times since 1994. Over the next month, it continued to rally only 5 times and averaged a -2.7% return. If gold miners buck that trend, it should be a good longer-term sign.” — Jason Goepfert at SentimenTrader
Market Rallies, But Again Lacks Gusto
By Bill Fleckenstein President Of Fleckenstein Capital
December 12 (King World News) – The stock market bolted higher out of the blocks and it took all of about two hours for the Nasdaq to gain 2%, while the Dow and S&P tacked on about 1.5%. Once again, the proximate cause seemed to be related to optimism on the China trade front.
After the initial upside flurry, the market traded sideways for a while before the indices began to slip, and by day’s end the gains were back to around the 0.5% to 1% level, depending on the index…
Away from stocks, green paper was weaker, as was fixed income, oil fell 1%, while the metals were higher, led by silver, which gained 1.25% versus just a couple of bucks for gold. The miners were very firm for the most part.
A Little Might Go a Long Way
To state the obvious, next week’s FOMC meeting is likely to have an impact on how markets trade, particularly if the Fed shows any willingness to back off its preordained rate hikes, which I think is likely to happen. As I’ve said many times, I don’t think that can really help the stock market, because it needs more free money, but the gold market has been depressed over concern about those rate hikes, so it may be able to do better on just a change in the language.
Included below are two questions and answers from the Q&A’s with Bill Fleckenstein.
Silver And Silver Miners
Question: Hi Fleck, If one has a largely similar view to yours, is there anything to be said for favoring silver, and silver miners, on the basis that they *should* provide a higher beta upside to the expected re-rating of precious metals and miners (through 2019 etc)? Or is this splitting hairs, or even just over-complicating what otherwise need only be a relatively simply set-up? Many thanks, once again.
Answer from Fleck: “Silver will likely do better than gold, percentage-wise. It usually does. However, there aren’t many great choice in silver mining, ex. PAAS, IMO.”
Gold, Miners And Bubblevision
Question: Only watch bubblevision when there’s volatility. Watched a lot this week and they didn’t mention gold or gold miners once during this breakout. Amazing.
Answer from Fleck: “It hasn’t gone up enough for them to care yet!”
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KWN has now released the powerful and timely audio interview with Andrew Maguire and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
ALSO RELEASED: Ralph Acampora, The Hammer, Capitulation And Is It A Dow Theory Sell Signal Or Not? CLICK HERE TO READ.
***KWN has now released the remarkable audio interview with Art Cashin discussing everything from today’s violent trading, to the possibility of a new ice age, what to expect in the gold market and much more and you can listen to it by CLICKING HERE OR ON THE IMAGE BELOW.
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