Nobody cares about gold miners anymore. There I said it. The level of overall investor disinterest in this sector must be at an all-time low. Now let’s be clear here, i’m not saying that bearish sentiment is at a record (I believe it will be difficult to top last November in terms of a bearish sentiment extreme), what i’m saying is that the bears don’t even care about this sector anymore. Nobody does!
GDX just reached a record low level of realized volatility (as measured by daily average true range) and trading volume is drying up faster than a Mexican oil well…
GDX appears to be comfortable settling around an area of minor support near $18.25 as each attempt to rally above $18.50 this week has quickly failed.
Meanwhile, another interesting real-time measure of investor interest (the StockTwits GDX message volume) has also just hit fresh lows:
Traders post messages about any market that is moving and they don’t care so much if it’s moving up or down. However, when a market is stagnant traders quickly lose interest as evidenced by the above chart.
If I had to choose two words to characterize investor attitude toward the gold sector today those words would have to be despondent and disinterested. I wonder where that places us on the chart below?…
