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Picture 1: GDXJ & TDG Junior Gold Index
In this chart we plot the daily bar charts of GDXJ and TDG Junior Gold Index.
The gold stocks are nearing a confluence of strong resistance. There is a chance this rally has already hit its peak in terms of price. If not, then we'd expect one more push higher but there is not much upside left. The 200-day moving average has held up the rally over the past few weeks.
Saturday evening we emailed subscribers TDG #502, a 26-page update that included a report on a junior exploration company we recently bought. We think the company's project has multi-million oz potential and is exactly the kind of project an acquirer could buy in a few years. The stock is trading well off its high and if it corrects in the next few months we will add to our position. We also covered in a very tiny exploration company we think has 5-10 bagger potential.
Below are some snippets from our update summary....
Gold made a bearish reversal on the weekly chart in US$ terms and also against foreign currencies. It continues to be weak relative to stocks and foreign currencies.
This being said, we don’t want to automatically assume the rally has ended. The gold stocks rebounded by 2% Friday and mitigated the bearish candle for the week. In looking at the daily charts of GDX, GDXJ and our junior index, they show 7%-10% upside potential before hitting strong resistance, which includes the 200-dma’s. Whether the next correction starts now or in mid February will likely be determined by the US$ index and bond yields.
Will they have another leg lower or are they consolidating before the next advance?
In any case, our focus is on buying quality and value and holding those positions. If something becomes very cheap we will buy. If Gold takes the juniors lower (which could occur at the end of winter into spring) then we will deploy more of our cash. Right now, most things have already moved but there are a few nano-caps offering excellent value. Given our outlook for this year, we want to be close to fully positioned by early summer or the end of
summer.
Buying quality and value has worked well so far in 2017 as our last 5 buys are up an average of 33.4%.
Consider subscribing to our premium service and following our lead on the next round of buys. We have a healthy cash position to take advantage of potential weakness in the coming months. There will be great opportunities if Gold retests $1050, or even just $1120.
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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.
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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: 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.
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