A Better Perspective

Given the risk-on spirit of markets today, as equities surge and the "fear trades" like the VIX, bonds, and gold giving back some recent ground, it is worth taking a step back and gaining perspective on some intermediate-term trends. 

Specifically, some gold mining leaders like IAMGOLD Corporation, based in Toronto, are finally taking a respite after spectacular surges. FNV is also in this group, an emerging larger cap gold miner which has been playing hard-to-get for longs seeking sound entries. 

That said, a mere pullback is not necessarily a long trigger. We are going to need to see gold bugs step up to the plate and not just be front-runners--They will need to face this selling sooner than later with conviction.  

In other words, the likes of IAG and FNV probably should not come in much more than 5-6% off recent highs to stay wildly bullish intermediate-term. Granted, they are gold miners and higher beta moves should be expected. But in order to maintain the case for a new bull run this is an excellent test of mettle into the pullbacks today. 

As for equities, we look to have a fair amount of fresh setups triggering as the market continues to shake off a multitude of reasons to correct.

More on this in my usual Midday Video for Members. 

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