gold, page-97569

Gold stock sentiment indicator.
Nice to see gold regain $2,400 AUD. Only another $60 and gold is back where it was before the fall leading into the bear trap.
Weak hands are still folding. Another couple of juniors trashed their trends yesterday.
Given the lack of response by producers, anyone would think gold is in a long term cyclical bear.
Probably a good time for bottom fishing as there were as many stocks being accumulated as holding trend.
Went through a lot of stocks yesterday for leveraged long positions that met specific criteria. Problem is actually buying these stocks. Oh well.
Far too many are looking weak. More than 50%. Around 25% are in accumulation and 20% are flat-lining.
When we are in a full-on bull market, at least 50% will be in accumulation.
This chart gives you an idea of how savage the rotation was. Had to adjust scales on nearly all as they went negative. This company had a discovery hole the same day POG bottomed on 5th May. There are too many charts like this. Moves like this are stocks closing near lows as price falls on massive volumes.
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And here is one of the better producer charts.
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A surprising lack of resistance at $1,800 yesterday though the line appears to be defended today.
Probably planned the smackdown to coincide with release of Fed minutes. All the commodities copped a kicking but suspect these moves are algo driven and Pavlonian. A rebound should be nearby given the real interest rate outlook.
Bond market. What is the bond market telling us? A few commentators are suggesting falling yields when they should be rising signals an economic slowdown is imminent which spells stagflation.
Divergence - wage rises, higher unemployment and increasing hires. Falling bond yields, rising CPI and rising mortgage rates. We are in a twilight zone.
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Sentiment took a breather yesterday and POG holds all the cards ATM. This is a very nervous market and any moves are almost immediately followed by profit taking.
Gold currently in backwardation - I expect this to be more apparent since B3.
Quite happy to see this pause while the sector regains a bit of balance.
Here is the indicator.
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