News Details – Smallcapnetwork
Markets Get Pounded - The Flight to Gold Takes Hold
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February 2, 2024

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PDT

It's more like Trough Day not Hump Day, but either way it's definitely not Trump Day. The markets are getting hammered, but it doesn't come as any surprise to the guys over at Elite Opportunity Pro (EOP). You might remember we re-published one of their editions the other day pointing to this type of price activity looming in the markets with the VIX having achieved a historical ten-year low just last week. If you missed the edition, here it is again: http://www.smallcapnetwork.com/Macro-Analysis-of-What-the-VIX-May-Be-Saying-Lies-Ahead/s/article/view/p/mid/7/id/2326/. It's definitely an article everyone should be interested in at least reviewing in anticipation of what may lie ahead over the next several months. EOP publishes their daily newsletter every trading day of the week, and today they revealed where they think these markets are headed. Not only did they break it down in plain English, they provided four different reasons why they thought these markets could be in for lower levels ahead. I'll just say they think these markets could be heading lower, however, the next buying opportunity once the S&P 500 achieves their downside target is probably going to be a very attractive one. Honestly, if you're serious about building a portfolio for the long haul, or you are an active trader looking for that extra edge, the Elite Opportunity Pro service is very good. It will keep you on top of the markets every move, and give you short and long-term ideas in only quality proven NASDAQ and NYSE listed companies with good growth potential. Also, back on May 5th, we pointed to a contrarian opportunity potentially developing in gold and its junior miners - and gold has done just that. At least for right now. But, even the guys at EOP say gold isn't quite out of the woods quite yet, so it's going to be a bit of a wild ride considering what these markets decided to do just this morning. They like to use the GLD chart for gold, which is the primary ETF tracking the commodity. The daily chart shows just today the precious metal has finally found its way back above its 50 and 200 day moving average. That's bullish no doubt and even some of the junior miners we track have also started to trade well. Desert Gold Ventures, Inc. (OTCBB: DAUGF) (TSE: DAU.V), an exploration stage company currently focused on mining of mineral resource properties in West Africa, has started to trade a little better following an announcement of a closed private placement earlier last month, but the stock's U.S. listing in the chart shown here doesn't do it much justice - especially considering its Canadian listing under DAU.V has been trading well on good volume ever since about August of last year. This is a classic case of what we always say though - the best time to buy penny stocks is when everyone is ignoring them, because if gold and specifically the junior gold miners really start to get some momentum again, it's going to be stocks like Desert Gold that are likely to be nice beneficiaries. It's always in hindsight we wished we could have owned a stock prior to a sector coming back in favor again. Another junior miner that's also really starting to trade better again is Nexus Gold Corp. (OTCBB: NXXGF) (NXS.V). I pointed out last week the company reported the completion of its phase two diamond drill program at the 178-square kilometer Niangouela exploration permit, located approximately 85 kilometers north of Ouagadougou. The completed drilling included the remaining phase one holes (approximately 500 meters) and an additional 2000 meters comprising the phase two program. A total of 18 holes, consisting of 2572 meters, were drilled in this latest round. The company's supposed to provide results from this recent diamond drill program hopefully soon, so we're not quite sure if investors are front running the results right now, or if the recent move higher can solely be attributed to gold's rally as a whole. Either way, I guess it doesn't matter - as shares of NXXGF are up about 15% already since just last week. If these markets decide they want to break down for a while, gold is going to be the one sector sure to move higher, and the junior miners will probably go with it. That's the norm anyway.