Been in and out of gold/precious metals funds over the years. In the wayback years.........well, I better not tell ya.
I don't recall a RSI of 13.6 for much of anything since 2008. A reading of 30 or less is considered a nominal low point for "watching" and a reading of 70 is moving towards the overbought area.
'Course, sometimes these trends have longer legs; not unlike a value stock/fund in a downdraft and the value continues to improve, except for those invested at a higher price.
But, as I posted on Sunday; many sectors in the broad commodity sectors are quite weak. Perhaps the big money is getting ready for an unwind and then a short term profit run.
Ya won't always be bitten by a barking dog; but caution should be observed as shown next, plus or minus a small blip:
NUGT today = -32%
DUST today = +31%
GDX chart, 1 yearTake care,
Catch
Comments
Which or what emerging market fund is down -20%?
OKAY, I see that you have changed the -20% to a -10%.....
Per M* the range is from +14.4% through about a -10%, with the average YTD of .24%.
M* EM link
12/26/2014 52-Week High: 1.06
10/16/2014 52-Week Low: 0.95
12/31/2004 All-Time High: 1.14
11/20/2008 All-Time Low: 0.55
Companies with little leverage or debt.
Companies that are increasing market share globally.
These companies are the "babies that have been throw out with the bath water".
Now the hard part...finding them.
Thank you for that info.
Catch
Edit/Add: @Catch22- Here's a longer perspective... looks like a decent bet, doesn't it?
Dividends are always nice. Now for the smart arse side of my investing brain.
If I can hold and keep a 10% return within 6 months maximum, I will forgo the dividend or income side of an investment..........I will call this a fair trade.
Catch
"My view is that the overall precious metals sector has an above average probability of rebounding over the coming weeks due to oversold conditions. Consider the following: Commitment of traders short bets on metals is at or near all time record; short term sell off in miners was a 4 standard deviation move; GDX stocks went through a record selling volume, more than 75% of gold mining companies fell to a new 52 week new low; zero mining stocks trade above 50 and 200 day moving averages; miners are down 30% over 3 months. All of these indicators, plus many others, foretell a short term selling exhaustion."
https://gallery.mailchimp.com/9cc4e575a1851ce3f56dc92fc/files/SSOL_Issue_07.pdf