Wild Week in Markets: Gold, Commodities & the Next Move

This week’s update at a glance

• One of the wildest weeks many investors will have seen. Sharp swings in sentiment created plenty of emotional pressure, but they also reinforced why process matters more than prediction.
• Commodities and miners are approaching a much more interesting zone. After heavy selling, risk may now be reducing while upside potential improves, but confirmation still matters.
• The US market remains more constructive than Australia. Particularly in quality growth areas, this still looks more like a buy the dip environment than the start of a broad collapse.
• The key is to work with volatility, not fight it. The right filters, patience and sensible position management can make difficult weeks far more manageable.

What you’ll learn

• How to think more calmly and rationally after a violent, whipsaw week in markets
• Why oversold conditions in commodities and miners can create opportunity
• Why technicals and money flows remain the key timing tool
• What the US market is saying versus the Australian market
• Why patience, planning and staged buying can materially improve long-term outcomes

The thinking shift

Weeks like this are a reminder that most of the stress investors feel is not created by the market alone. It comes from being underprepared. My approach is to first identify the right fishing hole using fundamentals such as quality, value and the probability of the story unfolding well. Then I use technicals and money flows to improve timing. That simple shift can reduce drawdowns, improve decision making, and help you get on board the next trend when it is ready.

What history shows

Historically, strong bull markets in precious metals and commodity stocks do not move in a straight line. They often include very sharp corrections that shake confidence and push out weaker hands. That does not guarantee an immediate turn here, but it does mean these periods can become highly attractive if fundamentals remain supportive and the charts begin to confirm a reversal.

Where I am focused now

• US quality growth: The US remains the stronger market and still appears to favour buying oversold conditions in fundamentally strong sectors.
• Precious metals and miners: Gold, silver and gold stocks are now in deeply oversold territory and moving into an area where a turn could become very rewarding.
• Commodity opportunities: Commodity stocks tend to reward deeper pullbacks, so this is the stage to prepare, identify what you want to buy, and wait for confirmation.
• Risk and patience: The deeper the correction, the less downside often remains and the more attractive the reward for risk can become.

Important information

_{Any advice in this video is general advice only. Neither your personal objectives, financial situation or needs have been taken into consideration. Accordingly you should consider how appropriate the advice, if any, is to those objectives, financial situation and needs, before acting on the advice. Garry Davis (AR No:317590) is an authorised representative of Primary Securities Ltd (AFSL No. 224107).}

_{Note to traders: The publishers of this article/information/promotion wish to disclose that they may hold stocks mentioned in their portfolios and that any decision to purchase should be made only after you have conducted your own enquiries as to the validity of any information in this material. Past performance should not be taken as an indicator of future returns. Trading in the stock market involves risk of losing money.}

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