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Gold-Stock Breakouts Near

Friday, April 7, 2017 15:25
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(Before It's News) / Adam Hamilton / April 7, 2017

The gold-mining stocks’ usual volatility has proven outsized so far this year, spooking investors.  A fast initial surge in a new upleg was soon fully reversed by a sharp major correction, which spawned much bearish sentiment.  That combined with the great distraction from the Trumphoria stock-market rally has left gold stocks unloved and overlooked.  But their outlook is very bullish, and major upside breakouts near.

It’s hard to find bargains in today’s extreme stock markets.  They’ve been radically distorted by the post-election euphoria centered on universal hopes for big tax cuts soon.  Nearly every sector has been bid up to dizzying valuations.  Except gold stocks, which everyone still hates.  They may very well be the last remaining contrarian sector in these crazy markets, and thus a great buying opportunity for smart traders.

Gold stocks have been left behind by the wild Trumphoria stock-market rally over the past 5 months.  As of the middle of this week, the benchmark S&P 500 stock index is up 10.0% since Election Day.  But the gold stocks as measured by their flagship HUI index are down 1.1% over that span.  The gold stocks have really suffered since the election, which explains the stubbornly-bearish sentiment plaguing them today.

But perspective is everything in the markets, and that post-election snapshot is very misleading.  So far in 2017, the HUI has rallied 12.5% to easily best the S&P 500’s 5.1% gain.  And despite the post-election gold-stock carnage, the HUI still rocketed 64.0% higher in full-year 2016!  That trounced the S&P 500’s mere 9.5% gain.  Gold stocks stealthily remain one of the top-performing sectors in all the stock markets.


The post Gold-Stock Breakouts Near appeared first on Silver For The People.


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