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Gold miners haven't had this few uptrends in

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DiscoverGold   Friday, 11/13/20 04:05:31 PM
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Gold miners haven't had this few uptrends in months
By: SentimenTrader | November 12, 2020

The relief rally this week, while historically broad, certainly didn't bring along all comers. Gold stocks have been looked at as a potential safe haven this year, even though their record on that score is mixed at best. Even so, investors saw no need for them this week.

As a result of the selling pressure, fewer than 70% of gold miners have managed to hold above their 200-day moving averages, the fewest since April.

This ends a long streak with more than 70% of miners being in long-term uptrends. Going back to 1986, there have only been a few times when more than 70% of mining stocks held above their 200-day averages for more than 6 months. The most recent one was the 4th-longest ever.

In most markets, when we see an end to a protracted streak of momentum, there is often some shorter-term weakness, but longer-term strength. Momentum does not die easily, but commodity-related markets are different beasts.

What else is happening

• Forward returns in gold miners after ending a long streak of momentum
• Seasonality in GDX
• Fund flows and Social Sentiment for gold mining stocks
• Sentiment on the Hang Seng and Nikkei 225 has become quite frothy

Stat Box

According to the Investment Company Institute, investors pulled more than $3.3 billion from bond mutual funds and ETFs in the week ending November 4. Remarkably, that's the first outflow in more than 6 months, ending one of the longest streaks of inflows in 23 years.

Sentiment from other perspectives

We don't necessarily agree with everything posted here - some of our work might directly contradict it - but it's often worth knowing what others are watching.

1. Investors had really shunned small-cap value vs small-cap growth stocks (until this week) - Capital Spectator

2. Readers of a popular investment website think stocks (stonks!) are going to jump in 2021 - Investopedia

3. Mom and pop got really excited bout the vaccine news this week (it doesn't mean what you might think it does) - AAII

Read Full Story »»»


Information posted to this board is not meant to suggest any specific action, but to point out the technical signs that can help our readers make their own specific decisions. Caveat emptor!
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