We have a continuation of yesterday's melt-up on equities, but GDX is sold at every bounce and the EV pattern of Gold futures does not support the new price bounce.
This move must be respected, but it is an anticipation of central banks easing next week.
The PM sector does not seem to anticipate such a move.
My intention is to start a short position when we will see a 20DMF MF divergence forming.
Pascal
GDX is still outperforming for the week and may just be shaking out weak hands at the daily resistance downtrend line, helped by weakness in ABX and NEM which are hurting the MF.
It is stabilizing at the daily pivot after an intraday shakeout (by one cent) at the low of the day. I won’t be surprised to see a strong afternoon up move from here to or above daily VWAP.
Billy
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