The gold miners’ stocks suffered a rocky start to 2021, rolling over into an extended correction after a young upleg prematurely failed. The resulting deeper lows left sentiment overwhelmingly bearish, with this contrarian sector deeply out of favor. But over the last five weeks or so, gold stocks have powered higher again in another young upleg. This one has a far-stronger foundation given the underlying gold setup.
The leading and dominant gold-stock benchmark and trading vehicle remains the GDX VanEck Vectors Gold Miners ETF. It held $14.2b in net assets in the middle of this week, a massive 30.6x bigger than the next-largest 1x-long major-gold-miners-ETF competitor! Several weeks ago I analyzed the top 25 GDX gold miners’ latest quarterly results, which revealed this sector now enjoys
AMD profiting from it s Zen 3 processors if not it s 6000 series GPU s due to lack of supply has meant that AMD s eye watering valuations have evaporated. Gone is Mid 2020 s EC of 317, gone is Novembers 137, AMD not stands on an EC of just 56! Which means AMD IS CHEAP! Thus gets a buy rating of 100%.
AMD is correcting which is good news given the fact that I consider the stock to be cheap in valuation terms. However with heavy support at $74, there is not much downside form the current price of $84. The current downtrend is pending reversal which could happen at any time. AMD s buying level remains at $78, though do take note that the Buy rating is 100%, so personally if I were looking to buy AMD stock then I would at least buy some at the current price with perhaps a limit order to buy more at $78.
Covid Current State
Firstly what s the current state of play in the deadly global pandemic game of vaccinate before the next Big variant wave hits.
The UK and US are beating the Covid monster through the aid of their highly successful mass vaccinations programme, with so far the US being able to fend off the death consequences of the UK strain that is fast becoming the dominant strain across the states. meanwhile most of the European Union is suffering a third wave.
So whilst the number of cases WILL rise in the US, unlike the nightmare under the final year of the Trump Presidency, all the signs are pointing to a far less deadly outcome and thus both nations are converging towards the end of most of the major restrictions in day to day life that have crippled economic activity for many businesses. That and accelerated central bank money printing which has flooded the markets with asset price inflation.