Bearish Short-Term Outlook for Miners, Utilities

GDX has more room to drop as does gold, and that would break support for GDXJ. Some miners with nice charts such as 1911 are also developing short-term topping patterns and breaking some support. Long-term the outlook is still very bullish. The broader market sentiment is at euphoria levels though, and downturns in teh broader market typically whack precious metals at the start.

Real yields are on the rise. The utilities sector has bearish potential. A spike in rates could be the trigger for a broad market sell-off because it would signal the Fed losing control over the market or that bond vigilantes returned from the gulag.

1911 Bucking the Market

1911 Gold (AUMB) is up big today, bucking the general trend in miners. Could turn into a breakout if it has legs. I own this one and consider it a keeper. I may add a trading position on a breakout. Patience will be rewarded in the short-term though, my sense is the entire financial market is in a precarious spot near term. More likely to get a good discount on quality miners than to miss a technical breakout.