SLR has registered the strongest "oversold" reading on some technical indicators, and general sentiment in gold stocks is absolutely terrible.
Many gold stock holders have either exited with large losses, or are still reeling from the pain of existing positions.
Blood on the streets equals bargain territory, massive capitulation and opportunity.
Technical traders are wise to wait for a turn around, and they risk very little by doing so, but make no mistake this is a crisis within the gold sector, and if the POG keeps going south, some high cost producers may have to close shop for a while.
If the broad stock market sells of now, gold stocks could get smashed even further, so gold stock buyers must have a game plan.
SLR Price at posting:
$1.06 Sentiment: None Disclosure: Not Held