Gold stock sentiment indicator.
Hallelujah, the world has been saved.
A preliminary release of information re safety of the of a vaccine a month before the safety trial finishes has markets in a spin.
Efficacy is in the order of 90% and this data will not be available till next year.
US and A$POG down around 4.5% as a result.
Of course, gold has nothing to do with COVID and everything to do with money printing and real interest rates.
Timing could not be better for those who want your PM’s.
Basically the day the technicals for gold turned bullish, in steps the CB-backed market makers to smash POG.
A confidence-destroying attempt.
Overseas gold indices were down around 6 to 7%. Not everyone is convinced by this drop in POG and many weak hands will have already been flushed out of markets last week.
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NASDAQ was hit based on work-from-home and similar stocks being hit hard.
I will tell you a secret – a number of companies will have calculated that employees working from home will save the business $6,000 per annum per office-based employee just on relinquished leased area alone. That amount will almost double when all costs are taken into account. That will be weighed up against productivity. This dynamic has already changed.
The DOW has fallen 1,000 points from its’ intra-day high. A lot of crap was probably off-loaded into the highs. Zombie companies are thick on the ground.
The S&P had a 3% reversal from opening highs.
Not convincing at all.
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From my perspective, the thing to watch for will be demand for physical and ETF inflows that have recently been picking up speed.
Prices have come down just in time for the Indian Diwali festival which begins next week.
If you have the guts and cash, time to do some shopping.
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Sentiment in gold stocks was running seriously hard. I knew something would have to give.
Leading indicators have been above 50% for 5 days straight. Can happen at the top of the market, rarely at the bottom.
Keep in mind there will be other future releases of COVID related data.
We just have to put up with this crap till something breaks.
The recent run should give most stocks enough head room to hold trend.
Here is the indicator.
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