Recent attempts to link gold stocks with the Dow have been obvious...
But gold stocks and gold are totally different from the stock market in general...true, these days the market goes up on inflation news because asset inflation is "good for" stocks short term.
But the nexus between gold and the general market is inverse... Gold will go up, as it did in the 1970's and early 80's when stagflation is in the air...
Any drop in gold stocks should be a buying opportunity in a market that is getting more and more pathological everyday...
Unfortunately the market masters have yet to give us an Hosanna Moment in gold stocks that would belie the range bound condition of the market as a whole...
Still nibbling on major weakness is possible... The market has yet to digest the true nature of the economic situation we are in... Traders are obviously locked into their short-term view...
But if and when the "dam breaks" gold could become a moonshot...even while the FED is pondering it's next move on rates...
Ultimately GOLD, NOT STOCKS will determine the course the FED will take... But shhh...that's supposed to be a secret!
