The XAU (Philly gold and silver index) chart looks sorry. For the month of February, spot gold is down about 2%, the mining index is down a hefty 15%! Even today with nice bump in bullion today, the stocks continue their decline. XAU 1-year
Any weakness in the price of spot gold and the mining stocks are in danger of losing their entire gain from December, or another 15% down from here. Danger Will Robinson Danger. Even turbulent news from Iraq and a bump up in oil is not enough to support the mining shares. This tape action looks like major distribution and traders need to be extremely careful as traders are crushed like ants when the elephants move.
Tape action on PDLI is not so good considering the news, however, the overall market decline is a weight. Ten minutes to the close, there is some buying support to bump it up 30 cents more into the close. This is a positive because the cliche is that the smart money moves near closing time.
Google rebounds well off the lows of the day, but risky would be a mild word.
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