Gold Stocks: Peak Bleak?

Gold Stocks: Peak Bleak? by Gary Tanashian, NFTRH via Gold Seek

Peak Oil? That was an obvious and widespread promotion while it was in play and did not fool anyone who bothered to step aside from the herd that ran with it.

Peak Terror in broad stock markets? Well, that I don’t discount so readily because this is a system that was a debt-bloated accident waiting for the trigger that turned out to be COVID-19. Terrified casino patrons will pray that the Fed’s bullets are not duds because that is the only way out. That and the still-intact mass confidence in the Keynesian debt scheme that the Fed operates within.

SPX has tanked to the 38% Fib (not annotated on the chart) of the entire policy-manufactured bull market from 2009. While I think there is a big time rally out there ahead somewhere, there is fundamental reason to question the very makings of the bull market and how effective more of those same makings will be. Well before COVID-19 we had SPX due for a manic sentiment blow off and downside reversal. Now the opposite sentiment, Peak Terror, has been slammed into place.

By the way, the green support zone – which corresponds with a 50% Fibonacci retrace of the entire bull market would take back not only half of the bull market, but 100% of the Trump rally touted by the president only 2 months ago, if the crash eventually works its way down to its first clear major support level. Meanwhile, the 38% Fib retrace level could instigate a bounce too.

s&p 500

But that stuff has all been factored. The market always was likely to pull a 38% or 50% retrace (although the trigger came out of left field and its violence has been for the record books). Risk had for months ridden side by side with the stock market and now risk is realized. I am long a few select items (in line with what I perceive will be best suited for the economic destruction being legislated the world over for pandemic containment purposes.

Peak Bleak in the gold bug “community”? Amid a few hearty and perma-bullish souls and an increasing group of bearish gold advisers the gold sector has out-crashed the broad markets and that is tanking sentiment along with it. In the link above you’ll see gold bug casino patrons every bit as frightened as stock market casino patrons.

Not to be overly obvious, but this exact thing happened in Q4 2008 too. I keep this blurb sent by a reader in 2014 on the right side bar for two reasons, only one of which is to promote my stance of that time to nftrh.com visitors and prospective NFTRH Premium subscribers. The other is to remind myself that it’s not easy and there was a lot of pain back then before we got to the pleasure part.

Continue Reading / Gold Seek >>>

Sharing is caring!

Gold Seek

Various authors presenting analysis and commentary on the precious metals, economy and precious metals mining markets.