|
Chart 1: GDX Breadth
The chart below plots GDX, its cumulative advance/decline line and the bullish percentage index which shows the percentage of gold stocks on a P&F chart buy signal.
The A/D line is a trusty leading indicator. It had been holding up well during this correction but since the Fed meeting last week it has plunged to new lows. Yet GDX has not, yet. The action in the A/D line argues by itself for lower prices in GDX.
Saturday evening we sent TDG #485, a 30-page update and the gist was we continue to be in waiting mode. The miners have gone nowhere for four weeks and could resolve to the downside very soon. The monthly charts, A/D line and general price action argue for that outcome. We see
the potential for a buying opportunity sometime in the middle of October or perhaps early November. We will have to remain patient.
Also, a downside resolution will help clarify the opportunities into 2017. I'm watching closely to see which quality companies hold up best during the coming weakness. Relative strength is often an indication of future strength. At the same time, I'm also watching to see which stocks become the most oversold and potentially good values.
Hold your winners, cut your losers and make sure you have some cash to take advantage of coming weakness...
If you want to get my full analysis then consider subscribing to my premium service for what amounts to less than $1/day.
This summer was the 7-year anniversary of TheDailyGold Premium and that period of time included the worst bear market in the sector in over 90 years. Nevertheless, the model portfolio then was up roughly 440% while GDX and GDXJ were down 21% and 26% (est) in that time. (Our junior gold index above was
up roughly 111%).
We seek to own the companies with the best fundamentals that have the best risk/reward potential. We want to own the leaders while avoiding laggards with limited potential. We also want to cut our losses. A 20% stop loss on a 5% position limits the loss to 1% of the portfolio.
We are the only credentialed technical analyst (CMT, MFTA) with a gold-stock focused service that utilizes a real model portfolio. We tell you what we are buying and selling. Hence, we are completely transparent.
And when you see the volume of our work and significant weekly updates you will realize that no one works harder than we do.
Our subscription cost amounts to less than $1/day!
There is so much fluff out there in this sector and much of it is way more expensive than what we provide.
Consider a subscription today as you will receive all of our recent company reports and updates within hours of your signup, as well as everything we produce for the next 6 months. You pay up front but get significant value up front (in a welcome email). Our goal is to help subscribers make money and
be the best service in its category.
Click Here to Learn More
Unsolicited Feedback.....
Jordan focuses nearly exclusively on the gold sector and in my opinion does a good job either being right, or getting right when adjustment is needed. He moves forward without hype, bias or ego.
Thanks for all your great work - charts and analysis is the best there is.
Your service is truly a gem among this industry. I've subscribed to several services over the past year and a half, and I wish I had landed on your site first.
I'm a new member - just want to say how much I appreciate your expert advice but mostly, your direct, honest and zero bullshit approach.
Click Here to Learn More
Weekly updates are sent on Saturdays while flash updates are sent when we make a trade. Reports are sent sporadically. Upon signup you receive all recent reports and updates. Unlike most other editors, we answer subscriber questions.
Thanks for reading. I wish you all great health and prosperity.
-Jordan
Disclaimer: Sponsor Companies are paid sponsor companies of TheDailyGold.com website and this free newsletter. Do not
construe sponsorship with a recommendation. The author of this newsletter is not a registered investment advisor. This newsletter is intended for informational and educational purposes only and should not be considered personalized and individualized investment advice. Investment in the precious metals sector contains significant risks. You should consult with an investment advisor and do your own due diligence before making any investment decisions. This email may contain certain forward
looking statements which are subject to risks, uncertainties and a multitude of factors that can cause results and outcomes to differ materially from those discussed herein.
|
