Dave Erfle – Takeaways From The Short-Covering Rally We’ve Seen In Markets
Dave Erfle, Founder of the Junior Miner Junky, joins us to review his technical and macro outlook on the short-covering rally that we’ve seen in the markets since Jerome Powell’s comments at the press conference after the FOMC meeting press conference and the weakening economic picture with the Q2 GDP coming in negative for the second quarter in a row. The mining stocks have accelerated their move up that began 3 weeks ago, as did most other markets, and this was further underpinned by the US dollar rolling over from its highs and with interest rates pulling back down some. There is still some trepidation and selling in the mining stocks though, and Dave pointed to the inflationary forces that hit the largest gold producer and bellwether stock, Newmont Mining, after a very rough quarterly operations report.
Next, we review that key support in gold around $1675 held for the 4th time in a row when tested a few weeks back, and importantly gold closed the month of July above $1780, which is a key technical level. Dave would like to see gold head up and close on a weekly basis above $1850 and $1900, and to see Silver close above $22 to signal a more intermediate bottom has been put in. We wrap up with having Dave share some of the fundamental data he’ll be watching for as things unfold, and how he is managing his portfolio in this present environment.