Stocks were down across the board today, with the S&P 500 posting its worst sell-off in more than four months and the Dow Industrials plunging by more than 260 points.
It was a tough day for equities. Yet, gold got taken out behind the woodshed as well.
The yellow metal sold off for the second-consecutive day today, suffering its worst two-day sell-off in 30 years.
In fact, according to this chart by Bespoke Investment, gold is currently trading at 4.5 standard deviations below its moving average … the most oversold gold’s been since 1975.
The market sell-off has also affected some of the largest miners in the market, sending companies like AngloGold Ashanti (AU), Yamana Gold (AUY), Randgold Resources (GOLD), Barrick Gold (ABX) and Newmont Mining (NEM) to fresh 52-week lows.
We’re seeing the same oversold condition in the mining sector … with the Relative Strength on GDX — the gold miner index — hitting its lowest point since 2008.
But here’s the thing … markets never stay this oversold for long. And when gold bounces back, it can unleash truly remarkable returns for well-positioned investors.
That’s why our in-house commodities expert Sean Brodrick is tracking a small group of junior resource companies right now.
These stocks have proven they could make you 4x, 10x, even 30x your money when the price of gold goes up.
Sean believes that we’re quickly approaching the bottom in gold prices. And with some of these companies trading at or below book value … now is the perfect time to start taking small positions in these companies.
He plans on issuing a few of his top recommendations tomorrow, and the only way to make sure you get the names and ticker symbols is by watching this brand-new investment presentation.
So don’t delay. Click here NOW to discover the top gold opportunities of 2013!
In Other Market News:
- China reported first-quarter GDP growth of 7.7%, below the consensus estimate of 8%. Economists had expected China’s economy to moderately expand after reporting 7.9% GDP growth in the fourth quarter.
- This is concerning news for the world’s second-largest economy, as its 2012 growth GDP growth rate of 7.8% was its weakest since 1999.
- Although the major U.S. indices spent the day in the red, Citigroup (C) was one of the few companies to stay in positive territory today following first-quarter earnings and revenue that exceeded analysts’ estimates.
- Earnings and revenue increased 30% and 5%, respectively, from the same period a year ago. This was the first earnings report for new CEO Michael Corbat, who has pledged to make the company more-efficient through layoffs and by closing branches.
- Merger Monday was in full-swing today as two large deals were announced. Satellite-TV provider DISH Network (DISH) bid $25.5 billion for the nation’s third-largest wireless carrier, Sprint Nextel (S).
- Now Sprint is faced with two offers as Japan’s third-largest phone operator, Softbank, bid $20 billion for a 70% stake in Sprint in October.
- Sprint finished the day in-the-green, as did laboratory-equipment maker Life Technologies (LIFE), which Thermo Fisher Scientific (TMO) agreed to purchase for $11.4 billion.
- Thermo Fisher, the second-largest life-science equipment maker, will now expand its presence in the medical testing market through the acquisition. With debt, the deal is valued at $15.8 billion and the $76-per-share offer price represents a 12% premium over Friday’s closing price.
- As for what the rest of the week holds for stocks, market direction could very well be decided by a slew of earnings out this week from some of the largest U.S. corporations. Goldman Sachs (GS), Intel (INTC), Bank of America (BAC), eBay (EBAY), IBM (IBM), McDonald’s (MCD), Morgan Stanley (MS), Microsoft (MSFT), Google (GOOG) and General Electric (GE) are among the earnings reports that are expected to move the markets.
Good Luck and Happy Investing,
Uncommon Wisdom Daily