Gold miners’ stocks have endured epic volatility in this past month, literally crashing before blasting back higher in a violent V-bounce. That preceding wicked capitulation flush savagely forced the weak hands out, paving the way for gold stocks’ next major upleg. The resulting fierce rebound signals it is already underway, with plenty of speculators and investors now chasing the huge gains this sector is famous for.
Perspective is essential and exceedingly-valuable for traders. If you don’t know where we’ve been and how we got here, you can’t figure out where we’re likely going. Context is necessary to frame this past month’s extraordinary gold-stock action, and to successfully game where this sector should be heading. Extreme volatility creates extreme opportunities, neither of which come around very often. Carpe diem!