Gold stock sentiment indicator. Bit of a lull at the moment. I noticed on Friday night when gold dipped below about $1815, gold slipped into backwardation. And quite aggressively so, by a few $. This indicates to me we could be seeing something of a floor in POG but this will not prevent shorters from pushing prices low, particularly if unloading short positions. Relatively quick rebounds are likely as backwardation is a bit like negative interest rates are to bankers. Not desirable. . This is a pretty good time to review which gold producers you would like to be exposed to when the gold price begins the next leg up. Stocks that have been hit the hardest are the producers and explorers/developers with resources. These are obviously de-risked. Unless gold crashes and burns, they also have a floor. A good place to start is to have a look at PE's and divs. The lowest PE's and highest div payers will be most desirable. . Gold is trading in a really tight range (a little over $10) ATM and I have not seen this for more than 12 months. Leading indicators ticked up to 50%. A short term recovery is on the cards. Plenty more to come including the February futures options expiry. The indicator has paused. Here it is. .
