Gold stocks are being hammered again and why investors should not try to catch the falling knife

FSAGX chart

Broad-based selling dominated the stock market session today. Gold stocks stood out as the weakest of the weak, with the Fidelity Select Gold fund (FSAGX, last change: -4.10%) dropping the most out of all Fidelity mutual funds. We have warned about the weakness in this sector multiple times in the last six months. Now it is becoming even clearer, that individual investors are well served to stay clear of this sector until the market regime changes again.

Technical analysis screens are provided by FidelitySignal.com   

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