UGL - Gold Stocks' Winter Rally 4
The gold miners’ stocks have surged in 2019, blasting higher after gold’s first bull-market breakout seen in several years. That powerful summer rally left them really overbought, necessitating a correction to rebalance exuberant sentiment. That grinding consolidation lower has set them up nicely for their winter rally, this sector’s seasonally-strongest time of the year. These seasonal tailwinds will amplify their next upleg.
Seasonality is the tendency for prices to exhibit recurring patterns at certain times during the calendar year. While seasonality doesn’t drive price action, it quantifies annually-repeating behavior driven by sentiment, technicals, and fundamentals.