Gold stock sentiment indicator.
Are we seeing a blow-off top in housing?
Can't miss all the positive reporting about house prices both here and overseas.
https://www.cnbc.com/2021/04/27/february-home-prices-see-biggest-gain-in-15-years-sp-case-shiller-says.htmlAnd here is the reality check. Key factors - mortgage rates are rising. The costs of building are rising - sharply.
https://goldseek.com/article/new-and-existing-home-sales-fact-vs-spinClassic supply and demand spike in progress.
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It appears the shakeout I was expecting is now underway and will probably last till the end of the week.
Really tight stops saw all my producers sold off in the last 3 days.
I expect to pick them up early next week at a 10% discount.
Nearly every producer was butting against resistance. Something had to give.
Notice how this has NOTHING to do with fantastic quarterlies or the price of gold which is still quite decent.
This past week has been a little different to previous times where gold stalled at a resistance level.
Typically stocks will get sold off after a couple of days if POG stalls. This time they have been held longer in anticipation of a possible breakout.
This is only about the paper market and the end of April.
The bull should resume very soon.
Juniors are holding the fort ATM. They have probably been punished enough and there is plenty of support around. You may have noticed volumes have dried up appreciably for the better quality ones. I expect there could be some profit taking over the next few days.
If the indicator pulls back then I am quietly anticipating a bounce from around 37%.
Here is the indicator.
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