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Picture 1: Gold Bull Analog
In this chart we plot the weekly rebound from the 2001 low in red with the average of the other strongest recoveries.
If the December low in Gold is a higher low then we can look to the red line for some reasonable guidance. That puts Gold at nearly $1550/oz in 9 months and nearly $1750/oz in 18 months.
Picture 2: HUI/Gold Ratio
This is a daily line chart of the HUI divided by Gold.
Gold stocks are on the cusp of breaking an 11-year downtrend against Gold!
Last week we included part of the summary from TDG #502 which included the following:
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.
Gold looked bearish a week ago but it closed January strong and closed above $1220/oz this week. More importantly, the gold stocks continue to show relative strength and strong breadth.
In TDG #503, a 32-page update sent Sunday AM we included a report on one of our latest buys. It is an exploration company with a very strong group of people involved and strong projects. Its impressive for having a market cap of only US $22 Million. We also discussed another nano-cap company we added to our watch list as well as another exploration company that is high on our watch list.
If you are looking for nano-caps, we've covered a handful of them in recent weeks. If you are looking for the lowest risk juniors, we have a producer watch list and we noted in the update two lower risk juniors worth buying now. Most of our coverage is on the in-between companies that fit somewhere between a $50M-$200M market cap. Since December we have bought 5 of those sized companies and the positions are up an average of 50%.
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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.
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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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