2020-11-18

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.

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