On the heels of yesterday’s Fed rate hike, the gold market is under attack and there is a bit of miner trouble.
September 27 (King World News) – Here is a portion of today’s note from Jason Goepfert at SentimenTrader: The GDX fund of gold miners lost more than 2% on a day the FOMC announced its policy on interest rates…
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Goepfert SentimenTrader continues: This has happened 16 other times, and it wasn’t a good sign for the sector. GDX managed to rebound over the next four sessions only 2 of the 16 times, averaging an 2 overall return of -4.8%. The last 10 all closed lower. The fund didn’t manage to rise more than 50% of the time until more than two months later. If it’s able to shake off this tendency, it would be a good sign that the multi-year downtrend is becoming unglued.
King World News note: Gold and silver bulls have to keep an eye on two things here. One: If gold does make a new low, will the HUI Gold Mining Index put in a higher low. Second: Will the HUI shake off the tendency to decline and head higher. As Goepfert mentioned, that “would be a good sign that the multi-year downtrend is becoming unglued.”
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***KWN has released the powerful KWN audio interview with Bill Fleckenstein discussing Friday’s gold smash and much more CLICK HERE OR ON THE IMAGE BELOW.
ALSO JUST RELEASED: INTEREST RATE HIKE: Boockvar On Fed Decision CLICK HERE TO READ.
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