TheDailyGold: More Downside Potential in Gold Stocks...

Published: Tue, 03/07/17

 
The Daily Gold
Jordan Roy-Byrne, CMT, MFTA
 
 

WEEKLY NEWSLETTER

Tuesday, March 7, 2017

 
 
Here are the actionable links from last week...
 

More Downside Potential in Gold Stocks

Penned Friday. Gold stocks hit our downside targets within 3-4 trading days. A bounce could occur for a few days but we ultimately expect gold stocks to test lower targets. 

Podcast: Mickey Fulp Comments on Metals & Shares Stock Pick

Mickey shares his thoughts on a number of metals/markets and provides some guidance to investors along with a stock pick. 

Macro & Credit Blog Update

Posted over a week ago but still relevant. Includes numerous charts and some thoughts on Gold and gold stocks.  

The Fed is Preparing $1 Trillion in QE for Next Recession

So says Deutsche Bank. Great article and analysis from ZeroHedge. 



 

Premium Snippets...

 

Picture 1: Junior Gold Index Bull Analogs

Here is the updated bull analog chart that includes both of our junior indices. The #2 is a smaller index with a median market cap around $100 Million. The main index has a median market cap around $450 Million. 

Both indices are currently below the bull runs from 2008+ and 2001+. I expect much of this year to be a grind for miners as they oscillate between support and resistance. If miners consolidate for a quarter or two they will remain in excellent position for a sharp move higher, if Gold is going to break $1350-$1375. 





Late Saturday we emailed subscribers TDG #507, a 34-page update that included a report on another of our recent buys. It is another company with a market cap below $30 Million and 5 bagger potential over the next two years. The company's CEO sold a project to a major before founding his current company. By my calculation the company is valued at $17/oz Au in the ground.  

We plan to be on the sidelines until GDXJ tests its 400-dma or a bit lower.

There is nothing wrong with cutting losses or swapping out of specific stocks because you find something better but given the upside risk over the next 12-18 months, you don't want to trade yourself out of the bull market.   

Much of this year (specifically the grinding period) will be a critical time to accumulate shares in the companies poised for big gains over the next 12-18 months. We obviously like our list of companies now but we aren't satisified. There are more big winners out there to be found!
 


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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.

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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.