Further notes on the chart. After a day like yesterday where EVN, RSG and SLR were hammered and have been over a few days, you would be inclined to think the run is finished. Clearly there is money going into gold stocks as well because the indicator stayed flat. The indicator helps understand that money may be going into the spec area or those off the radar (below ASX200). This is why I call it a sentiment indicator. Good stocks will rise with the indicator, particularly producers. In the down cycle, practically everything falls. News driven stocks will do whatever. There are always outliers. Compare your favourite stock peaks and troughs against the indicator to see if you can make money or not. An example - OKU put out an excellent set of drill results at the bottom of the cycle for a 5% fall (10/12/2019). The next set, which I consider less impressive, came out on the 17/10/2019, after the bottom was in and POG was rising, saw a >20% gain. It's all about sentiment and timing. I believe there is more to go in the current cycle as stock prices are yet to reflect the POG. I have watched companies hedge at the bottom. Major sales (the recent EVN deal, JPM and Citi) were also seriously bad timing for the seller. It is interesting to watch and I have a bit of a giggle (slightly insane) at some of the online commentry. Cheers
