I hope you’re having a great break over Easter. I’m off to a little town called Inverloch to do some fishing and not think about the stock market at all.
In today’s Closing Bell video, I don’t spend much time on equities because they remain in limbo, with the S&P 500 stuck between the two key levels that I have set out for you in previous videos.
The short-term bullishness remains, and I am happy for the market to trade higher if it wants to. But there’s still plenty of overhead resistance, and I need those levels breached before I can become more confident that the tide is turning.
Last week, I said that the beaten-up gold sector was a happy hunting ground at the moment because gold had been rallying, but the speculative end of the gold sector was still in the doldrums.
I showed you my watchlist of gold stocks and took you through them to point out the ones that were looking OK. One of the stocks I mentioned as having a solid chart was Westgold Resources [ASX:WGX].
WGX rallied 13% over the week, with many other gold stocks jumping. One of the stocks that I gave to members of my Fat Tail Microcaps trading service jumped 20% above our entry price. We entered the stock on 30 March.
I give you a detailed look at the WGX chart and point out where I think the price could head in the short term if the gold price continues to rally.
I also have a look at the gold price again after we saw a nice jump during the week. The gold price is getting close to the all-time high and who knows what could happen above there.
There is a heightened risk of a short-term correction in the price of gold while it remains below the all-time high, but the bigger picture remains firmly bullish for now, so I would use any weakness as a buying opportunity.
Regards,
 |
Murray Dawes,
Editor, Money Weekend
PS: Due to the Easter weekend, there will be no Monday edition of Money Morning on 10 April. We will be back to our usual publishing schedule on Tuesday, 11 April.
