Gold stock sentiment indicator.
A$POG is looking good and holding up well.
Here is the 30 day chart for A$POG.
The capitulation in Aussie gold stocks is understandable.
Gold has fallen 6% in the last month and the stocks have been retreating across the board.
Producers have been falling at the ratio of 3:1. For each 1% fall in POG, stocks have fallen around 3%.
Juniors on the other hand have been falling at a ratio of around 5:1
As I have often stated, juniors are often late to the party and this seems to be the case during this sell-off.
Producers are already showing signs of recovery and are well above lows.
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Believe it or not, the XGD is still holding trend and has room to fall further without trend damage.
This trend has held since 2015.
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One reason for my optimism is how far sentiment has retreated.
We are in unchartered territory as the indicator has not hit these levels before for long enough to drag the 10dma below 25%, which will definitely occur next week.
The trend is somewhere near 32% therefore a snapback rally can be expected.
Being on the right stocks should see gains of 20% delivered when the mini rally occurs.
If the rally overshoots then where it pulls back to will enable me to determine if the new up leg has begun.
If not for MAN, TMZ and a few others my PM portfolio would be looking quite dismal.
Another reason for my optimism is the chart positioning of quite a few stocks. Aligning of the stars I will post a few on the various threads.
This type of alignment also occurred for the producers back in December/January prior to the bull trap but all the trends were subsequently demolished.
Here is the indicator crashing and burning.
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