Gold stock sentiment indicator. The most glaring of all the CPI numbers was the monthly gain of 0.9%, the highest in 40 years. Have a look at how inflation and interest rates unfolded at that time. When I estimate the target price for a stock I look at the initial move and strength of that initial move and apply a multiplication factor. I hope this does not apply to inflation else it looks pretty grim. . While there have been quite a few trend casualties over the last 2 weeks, one that went only 2 days ago has risen over 20% today. Reviewing target prices I found approximately 60% have now been reset with lower lows. Many of the remaining target prices are over 100%. Trend breaks allow those stocks to have a bigger run before hitting resistance, setting up bigger targets. The current period is setting up to be a rather unusual but ultimately extremely profitable arrangement. I am still able to take the odd profit and dig out the odd bargain - don't need may stocks to run >100% to make a portfolio look very healthy indeed. . Sentiment is falling further and I will re-evaluate how the trend may appear once this low is in. It is Friday and can throw up the odd surprise. I would be more than happy to see gold sit around US$1,850 level for a few days consolidation before having a go at next resistance around $1,860. In the meantime A$POG now sitting around $2,360 and is climbing in stealth mode. The AUD looking a little toppy. A decline here is in Aussie gold stocks favour. Leading indicators have plunged to levels (below 30%) not seen since the 5/3/20 when gold was A$2,190 so this pullback is massively oversold. Here is the indicator. .
