The selloff continues.
The S&P 500 is now 8% off its record high set earlier this month.
The NASDAQ is 10% off.
Gold is now down around 10% from its record high as well.
This isn't a doom piece.
The S&P had a gap to fill from when everyone thought the world was going to end in March.
A little strength in the dollar. A dash of volatility in the couple tech stocks propping the whole thing up...
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And voila, a steep selloff from bubble-high stock prices.
Bit faster than a Nikola rolling downhill, huh?
Gold, for its part, has gotten hit hard as well.
It needs to hold $1,863 - where it briefly fell on August 12 - or there could be more "trouble" ahead.
Trouble is in quotes because even a gold spill to the next resistance ~$1,800 is still multi-year highs and I can make plenty of money at that price.
I said this isn't a doom piece.
I think you get another stimulus and Fed tools that keep the stock party going.
At the same time, those tools are what drives gold higher.
I think this is a "buy the dip" moment in gold stocks.
And certainly, a keen opportunity to trade quality names as you have a discount window.
It's just that, a window.
One window in a big house that is the market.
The dollar is a bit overextended in the short-term, and a reversal would send stocks and gold back higher.
Longer-term, the fundamentals are clear and if you don't understand them you have bigger issues than short-term market fluctuations.
See more on how these cycles work here.
Call it like you see it,
Nick Hodge
Nick is the founder and president of the Outsider Club, and the investment director of the thousands-strong stock advisories, Early Advantage and Wall Street's Underground Profits. He also heads Nick's Notebook, a private placement and alert service that has raised tens of millions of dollars of investment capital for resource, energy, cannabis, and medical technology companies. Co-author of two best-selling investment books, including Energy Investing for Dummies, his insights have been shared on news programs and in magazines and newspapers around the world. For more on Nick, take a look at his editor's page.