No Taper Decision by the Fed Results in All Time Highs for the Dow and the S&P 500; Bull Market for Gold Stocks is Confirmed

Fidelity Select Gold Fund (FSAGX, last change: 8.62%)

The Fidelity Select Gold Fund (FSAGX, last change: 8.62%) was the largest-gaining Fidelity fund in the market rally that followed the Fed’s decision about not dialing back on the QE3 asset purchase program. The chart pattern of higher lows confirm that gold stocks are no longer in a bear market.

 

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

 

Gold Stocks Continue to Advance

Fidelity Select Gold Fund (FSAGX, last change: 1.65%)

We identified the end of the bear market for gold stocks in the blog post on August 16. The bullish trend continues for the gold mining sector and the Fidelity Select Gold Fund (FSAGX, last change: 1.65%) is one of the best mutual funds available for investors to participate. While the general stock market is weakening and we are heading into the often volatile fall season, FSAGX may be a good choice for investors seeking capital appreciation.

 

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

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