Here are 4 great actionable links for you....

Is the Relative Strength in Gold Stocks Significant?

Penned Tuesday. The relative strength has some hopeful for a big rally in the sector. We break it down and compare two past instances. 

Interview: S&P More Important to Gold Than US$

Interview with the KEReport. Recorded Wednesday. We cover a handful of different things including seasonality. 

Interview: Overdue for Relief Rally but not Bull Market

Interview with my friend Collin Kettell. We cover the immediate outlook and the long-term outlook. 

Current Message from Most Useful Sentiment Indicator

From Steve Saville. Excellent post with a number of charts. 

OUR SPONSOR:

Chart 1: Gold Monthly Line

In the early 1980s Gold's first bounce came from trendline support but that failed and took Gold to a marginal new low but significant bottom in 1985. Then a legit bull market began.  

This time around Gold bounced twice from major trendline support (Dec 2015 and Dec 2016). The December 2016 bounce in the big picture was weak and has rolled over. 






Chart 2: GDX & GDXJ Consolidations

Here we plot the daily line charts of GDX & GDXJ which remain in trading ranges though with a bearish bias. 

If GDX loses support at $21.00, then its downside target is roughly $17.00.

If GDXJ loses support at $30.00-$31.00, then its downside target is potentially $23.00. 


 

This 24-page update was published and emailed to subscribers early Sunday morning. The fledging summer rally we proclaimed fizzled out. Maybe it begins from a lower level in metals prices.

Our biggest concern after last week is the sharp reversal seen in the miners. They peaked Monday. GDX & GDXJ would need to gain +4% to retest their Monday highs. My worry is even if Gold (which closed at $1241) rallies to $1285-$1290, miners will not exceed those recent highs. 

The Gold monthly line chart shown above is damning for the sector and we see the potential for serious breakdowns in GDX & GDXJ. The HUI, which is only producers (no royalty companies), is much closer to a serious breakdown than GDX and GDXJ.

The sector has been hit hard so a repieve is likely coming soon. But will the sector rally big? Or will it fizzle out and consolidate in bearish fashion?

We've been cash heavy for a few months and will see how our remaining stocks act after releasing important news in the weeks ahead.

We plan to make money if the sector heads for an ugly fall and miners breakdown. The bull market will begin when the Fed ends its hikes. That could be 9-15 months away. 

Consider a subscription as we can help you navigate what lies ahead for the sector and help you position in the stocks that can make big gains when the Federal Reserve is done hiking rates. Subscribe and give us your list of stocks and we will give our opinion, buy, sell or hold.  

 

"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


I follow your work and it's very impressive -- am considering subscribing even though I focus on futures and macro more than individual equities. You are a refreshing voice in a space full of doom-and-gloomers, perma-bulls, and precious metals salesmen.


My 6 month renewal is due once again. Your work continues to be outstanding and I want to make sure there are no disruptions in the service.


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.  

 

 
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Thanks for reading. I wish you all great health and prosperity in the second half of 2018 and beyond!
 

-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.