A new week and a new trading day that has stocks on the fence after Friday's miserable selloff in large cap tech. It wasn't as bad as it looked though when you consider stocks like Amazon, Alphabet and Netflix make up so much of the index weighting. In other words, when those stocks get clobbered, the major indices they reside in will always take a big hit.
Some say it was due to algorithms being triggered, and some say it was a negative report Goldman Sachs put out on those FANG stocks. But we've seen those negative reports time and time again only end up offering investors a buying opportunity, rather than a selling one.
What I'm saying is it would be no surprise to see these markets somehow buck Friday's selling and move higher once again. It's happened so many times before that until something changes in a big way, we can't just take one bad day and run for the hills.
The guys over at Elite Opportunity Pro (EOP) set some targets on the NASDAQ just this morning, and their thinking is a bit different. Although they still think stocks will end up going higher in the end, they do think the NASDAQ could sell off substantially before it does. Their concern right now is how far away the index has ran without any sort of major pullback.
The monthly chart of the NASDAQ makes that pretty clear, so I honestly can't say I can argue with them, especially since they're right more often than not. We can agree stocks need a breather, that's for sure, but how much of a breather is the big debate right now.
The Fed is set to take the stage again on Wednesday, so we're assuming whatever she reveals is going to move the markets in volatile fashion. A rate hike is expected, but let's see what the Fed does now that stocks showed her how quickly they can fall apart.
The guys at EOP keep saying buy value right now and last Friday proved that in spades. As a matter of fact, you would be very surprised to see just what they've been suggesting lately. It's not the norm believe me.
In our small and micro-cap world, it was good to see nothing there took a big hit last week, and if what happened on Friday starts to persist, gold just might be where speculators should be.
Gold's been in a stealth like long-term rally since the beginning of the year, and it remains to be seen how much upside is ahead. However, there does seem to be quite a bit of developing interest, and with China continuing to gobble up gold, it's possible the fundamental backdrop for higher gold prices is definitely there.
There also seems to be some exploration resurgence in certain areas of West Africa again, specifically Burkina Faso, which is where Nexus Gold Corp. (OTCBB: NXXGF) (NXS.V), a Vancouver-based gold exploration and development company, is currently focusing their efforts right now.
Some of you may have missed it, but Friday after the close Nexus Gold Corp. put out a press release announcing CEO, Peter Berdusco is being featured on CBC's Documentary Channel Monday through Friday, throughout the day and evenings.
CEO Clips is the largest library of publicly traded company CEO videos in the US and Canada. Their 90 second video profiles broadcast on national TV and are distributed online on top financial portals including: Thomson Reuters, BNN.ca, and Stockhouse.com. They are also disseminated via a video news release to several financial portals including Globe Investor, OTC Markets, TMX Money, and The National Post.
For those of you invested in or are considering an investment in Nexus Gold Corp. (OTCBB: NXXGF) (NXS.V), we'd strongly suggest you take a few minutes and watch the video archive of their CEO explaining the benefits of gold exploration in Burkina Faso, West Africa.
Just go here to access the video: http://www.b-tv.com/nexus-gold-ceo-clip/.
If gold and its junior miners can get itself turned around again, there should be some nice gains to be had - just like what we've seen on a few other occasions this year already.