There’s something very wrong with the “hyperinflation” narrative.
The gold miners GDX can’t even get to a full 38% retrace level without collapsing.
Price action has negated the targets from the prior update.
It should be clear at this point, a monstrous 5,600 page, so-called stimulus package is not inflationary.
For an irreverent look at what’s in that bill, reference “Salty Cracker”.
By the way, just how long does it take to write 5,600 pages? A couple of years, maybe?
Probably as much time as it took to write the original CARES Act … which was submitted (put in committee) to Congress during January 2019 … a full nine months before anyone even heard of the “speck” in Wuhan.
The inference is, both of these bills were planned long ago and have been in the works for years.
Which brings us to gold and the miners.
The hourly chart of GDX shows two wide bars in today’s session. The 35.00 – 35.50, area is support that may stop the down move for now.
Wide price bars usually get tested. Today’s action (as of 1:34 p.m. EST) shows GDX is moving quickly.
Expectation now, is for GDX price action to test the wide bars. That could take hours or days … or not at all.
If there is a test, the most likely stopping point is yesterday’s low at GDX, 36.18
In other markets, the short position in XOP (via DUG) is being maintained. Stop has been moved to DUG, 26.63; not advice, not a recommendation.
Charts by StockCharts
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