The Gold and Gold Mining Group Is Acting as a Safe Haven

The Gold and Gold Mining Group Is Acting as a Safe Haven

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Stocks opened poorly and the selling has been steady so far. What is most troubling about the action is that breadth is running about 6 to 1 negative and there are few safe havens. Recently the uncorrelated market action has led to some good stock picking but we have now returned to wholesale dumping and there isn’t much to do but to raise cash and stay out of the way.

One group that is acting as a safe haven is gold and gold mining. My favorite in the group has been Barrick Gold (GOLD) , but I’ve added Kinross Gold (KGC) and Pan American Silver (PAAS) . I’ll be looking to beef up exposure to this sector further.

Speaking of safe havens, the trade in Bitcoin using Grayscale Bitcoin Trust ETF (GBTC) is developing well. Technicians will be watching the high around $12.25 to signal a breakout.

I have a few low priced speculative trades going in ‘junk’ names like Creative Realities (CREX) , Pluristem (PSTI) , and Neptune Wellness (NEPT) , but the pockets of speculation have cooled off quite a bit. The focus is still on medical and biotechnology plays but they require very disciplined trading.

My overall market thesis is that a trading range will develop but the indices are still hunting to find support. We have a little bounce off the lows but there are no signs yet that the downside momentum may not continue.

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