A totally strange and irrational week for our confused, bewildered local market I should say.
Totally ironic that I should say people should not panic (as it appears so) , the US markets are chugging up nicely and the risks appear moderating (uhm, at least at the surface) and why are people not making up their minds - two days ago, WAAAX stocks were marked down sharply but it has all but recovered in these last two days. And today they took on the gold stocks.
If you had bought gold stocks to gamble on the gold price going up, let me remind you about the period when these gold stocks were still performing well even though gold price did absolutely nothing. And I tell you why that is happening - because we have more market participants now trading them. These are people worried about gold price breaking the next support level and so on and trading on such premise. But in the overall equation, the reduced price is not anywhere catastrophic for these producing companies because they will make record profits to show for (as long as they maintain their production levels) , and as for the explorers, their prospect and therefore sp should be determined based on nearness and prospects of great discovery - it hasn't even produced any gold yet so gold price don't matter. So it all sentiment fed by unwarranted fear , the same which happened two days ago on WAAAX stocks.
Accordingly, from next week, this Table below would no longer be presented on a daily basis because we should actually not be looking at them too closely as it is meant for long term investment.
The weekend is good to assess and get our bearings right - if global markets are making their all time high, and does not matter if ASX does or does not, but today's capitulation across except WAAAX is both excessive and unwarranted. When the market returns next week, we may well see a reversal in fortunes as we did for the WAAAX stock and truly wondered why we got caught up joining the madness this week.
