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HiredGoon

Mining company beatdown

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A lot of Australian mining companies have been taking real hits recently, a few days in a row of -3%, enough to drag the whole market down by a few percent.

 

I'm bullish on commodities buying from the east (but not from the west) but I'll be pissed off if I buy and I could have gotten more if I waited - how long do these dips in base metals miners usually take to play out?

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THere's a decent shakeout going on right now,

and that ha brough some panicy sellers amongst the Junior miners and explorers.

 

Money is being taken off the table, and the sellers are dumping stocks that report bad news.

Once the gold price stabilises, and heads back up again. the flows will reverse, and money will come back in.

 

Personally, I think the worst part of the gold decline is over, and if I am right, this selling will be done

within this week or next.

 

But remember, this is an opinion, not a statement of fact. So do be careful, and avoid too much concentration

in the volatile Explorer and Junior sectors of the market - unless you can take the volatility

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But the general indices have not corrected.

 

If they they now correct or even tank, the mining sector is going to get further hit. Don't you think?

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depends on what happens to gold as the market tanks.

 

Oil and Gold are getting their correction out of the way now.

maybe the general market will tank as those commodities soar

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