Looking around my watchlists there has been a wave of selling across the speculative resources sector (& financials) over the past week. Today was no different with another fairly broad sell off with a number of small cap resources stocks (& others) down around 10% (check out BBI, CNP, KIK, CXY, KEY, MEO, NDO, ADX , CUX, NUP, TOE, WCU, PLA, PNA, BCN, PNO, HFA...it just goes on and on).
This is being partly driven by people being wary of the recent rally ending and another downward movement beginning and follows some recent poor economic data from abroad, namely Wednesdays poor US retail figures and Europe's GDP data.
People in general appear to be removing some of their speculative positions and locking in some profits. This applies to stocks like GDN, which is also impacted by the nature of its register and the recent delays that have occurred.
Personally, at this point, I am not overly focused on the short-term sp fluctuations, predominantly due to the fact that there are still 4 major zones of interest yet to be intercepted (backstops at this stage).
In Paradox 1 there was a major sell off after the cement incident that saw relentless selling drive the sp down to ~$0.40, but the primary target was still there to be drilled into and eventually if you held the panic subsided and the sp got back over $1.20.
The point at which I reconsider will be based on a number of factors, but one of the chief areas I will look at will be where the drill is and what has or hasn't been hit.
All good fun as long as you are not overexposed.
Cheers SBC
GDN Price at posting:
16.5¢ Sentiment: Hold Disclosure: Held
