Stock Market Selloff $SPY Is Gold Ready to Make a Move $GDXJ $GLD
The stock market sold off which is not surprising considering the back ground of rising interest rates, 7 distribution days on the SP 500 and 6 on the Nasdaq as well as 61.6% of all investment advisors are bullish. This bullishness is a 6 year high and we all know the masses always get it wrong. Put into context as a trend follower that the 30 yr mortgage rate now is 4.53 and last year at this time it was 3.34. Big difference!!!
Being a trend follower you trade without opinions. Such in point is the move in the Junior Gold miners. Gold went from being the love of the market to being hated. Everyone thinks gold is going lower…however yesterday the $GDXJ moved and broke out. It is completely unknown if this is a false breakout or a sign of a new trend. That is why you only risk less than 1% of your account size on any trade.
Past performance is not indicative of future performance