Sector Rotation: New Bull Market Started for Gold Mining Stocks

Fidelity Select Gold Fund (FSAGX, last change: 5.22%)

The chart pattern for the Fidelity Select Gold Fund (FSAGX, last change: 5.22%) has turned positive and we think that the sector is in the beginning stages of a new bull market now. FSAGX is making higher highs and higher lows, while clearing the 100 day moving average too. We wouldn’t be surprised to see a pullback in the next few days after the recent strong performance, which should provide investors with new opportunities to establish positions.

Buy/sell signals for Fidelity funds are available at FidelitySignal.com 

Panic Selling of Gold Stocks

Fidelity Select Gold Fund (FSAGX, last change: -4.92%)

The selling of gold mining stocks accelerated today. As the result, the Fidelity Select Gold Fund (FSAGX, last change: -4.92%) has reached a new 52-week low. The panic selling of gold stocks is not well explained by the news. This should serve as a red flag for investors who are trying to pick the bottom to go long in gold. We will not consider investing in this sector until prices stabilize.

Buy/sell signals for Fidelity funds are available at FidelitySignal.com 

Markets Sell Off Due to the Federal Reserve Hinting at Slowing the QE3 program; Real Estate, Gold and Latin American Funds are Hit the Hardest

Fidelity Real Estate Investment Fund (FRESX, last change: -3.08%)

The Fidelity Real Estate Investment Fund (FRESX, last change: -3.08%) was down the most today out of all Fidelity mutual funds.

Buy/sell signals for Fidelity funds are available at FidelitySignal.com