DeerIslander:

The critical question for me is the oil and commodity selloff. The question seems to be: Is this just another hard selloff to be inevitably followed by a return to new highs as we've seen in the past and thus sooner or later a buying opportunity? I'm not sure. It seems to me the only way oil and commodities could selloff and stay down is if we are heading into a global recession or at least substantial slowdown.

One thing I notice is that the "weekly" charts on the GGs look worse than they have in the last selloffs.  That could mean they're intermediate corrections.  But I still think the fundamentals favor GG.  It's just that they got too high.  (And I'm not talking about oil here - I'll defer that to Anil).

But that's not to say everything is rosy in GG land.  In addition to oil, the price of iron ore, coal and steel are at record highs.  And China is really feeling the pinch.  But they're still buying, since growth is their number 1 priority.  That means our GG miners our safe...and raking in record profits.

BUT... some of these GG miners and steelmakers are are in acquisition mode.  And that's pressuring their shares.  They're either taking on new debt or authorizing new shares.  It will be good in the long-term since they're securing their own raw material supplies and building economies of scale.  But in the short term, it's adding to the selling pressure.