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Chart 1: Precious Metals Sentiment Indicators
In this chart we plot GDX along with a number of sentiment indicators: The Gold CoT, the Silver CoT, GLD's put-call ratio and the Bullish Percentage Index (which is a breadth indicator but being on a fixed scale makes it very useful here).
Gold stocks are certainly nowhere as oversold as they were in the previous Decembers. And the sentiment indicators, while encouraging are not at true bearish extremes.
To answer the above question, I believe we will get a seasonal rally (it has already started, obviously) but I do not believe the percentage gains will come close to those seen in the previous rallies.
Late Saturday evening we published TDG #548, a 24-page update which included a report on one of our top holdings. It was one of our biggest winners of 2017 but has since corrected quite a bit. It is trading slightly above our "strong buy" price target. The people involved with this company (especially two of the geologists) rate as fantastic and their projects have significant potential. The company has a enterprise value of barely above US $40 Million but the potential of each
of its two best projects (individually) is 5x-7x that figure. The company has cash, is drilling and will have news flow over the next few months. At its recent low the stock was trading 45% off its 2017 high. These are the low-risk conditions around which you want to be a buyer.
If you exercise patience, buy at opportune times (sector oversold, stock oversold, value, etc), choose the right companies and cut your losses, you can achieve good results.
Now is a great time to consider a subscription as we have begun to update all of our company reports and will produce some new ones. It would be an honor and pleasure to work for you!
"I am simply a pure market-timer for a broad basket of gold stocks and precious metals. Jordan, on the other hand, has provided superior STOCK-PICKING abilities over the longer-term. I am familiar with most gold stock subscription services over the past 30 years. I rarely provide endorsements of any kind, but Jordan's ability to analyze individual gold/silver stocks has been among the top 5 services over the past decade. First and foremost, I respect his integrity.
- Dr. Jeffrey Kern, SkiGoldStocks.com
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You nearly always read the trends and support and resistance extremely well. Please keep us posted if or when the outlook seems to change. which you always do of course. TDG is the most valuable resource for understanding what is possible to understand about the PMs.
I am very pleased with your frequent and timely updates, which is so helpful, considering the high volatility and unpredictability of this market. I have subscribed to other analysts which I have to say don't even come close.
I would add that you are moving to the top of my most valuable mining stock/metals advisor list. Your skills at chart reading have improved over the years, to very high levels. Kudos for that. Your advice on capital preservation in this dangerous trading arena are reliable, as well. In the years ahead, I believe you will continue to rise to the top.
I plan to be a lifetime subscriber to your service....I have made a lot of money with your service...especially with Novo which because of your recommendation I was able to acquire at $1.30.
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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. Novo Resources has contracted TheDailyGold.com for marketing purposes.
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