Well, I'm certainly not a general equity bull and hence am not surprised at the recent (ongoing?) global equity market drop. I did also forecast a certain amount of weakness for metals, commodities and precious metals shares. So anyone following my posting got several warnings.
However, when I examine the gold, silver, precious metals stocks and various ratio charts the picture is mixed.
Some bearish signs: major miners (which are heavily weighted into gold mining indices) Barrick Gold (NYSE:ABX), Newmont Mining (NYSE:NEM), Goldcorp (NYSE:GG) are making new lows for 2007 and the charts look like they can slide lower. XGD the Canadian gold miners ETF, $XAU – both closed at a new low for 2007
Some bullish signs: The gold & silver charts do not look that bad (yet), the HUI continue to outperform the heavy hedged XAU. Some juniors are outperforming as Stacy M. Himes posted.
I favor holding good long term gold, silver and precious metals shares positions, be in a wait and see position, do not capitulate, do not sit and wait like a duck for your stops to be taken and don't be shy to take partial profits. If you can't stand the volatility then decrease your positions.