|
Chart 1: GDXJ w/ Breadth Indicators
Same chart as last week but updated.
The chart plots GDXJ along with breadth indicators based on a 55 stock basket of junior stocks. We plot the percentage of the basket that closed above their 20-dma, 50-dma and 200-dma.
Last week we wrote:
Maybe if GDXJ declines 9% to that strong support near $28, then the breadth indicators would approach extremes.
The breadth indicators reached extremes on Thursday. Then the percentage of stocks that closed above the 200-dma was the lowest in 3 years! The other two readings were not that extreme but they were extreme. GDXJ is also trading right around support from December 2016 and early 2016.
TheDailyGold Premium #583
|
The 24-page update was published and emailed to subscribers late Saturday night.
Last Wednesday we sold our JDST and DUST positions for a massive profit. Its one of the best trades we've made in TheDailyGold Premium. Having experienced the decline in miners in 2008, 2013-2014 and to a lesser degree in 2015, we have the battle scars and now the expertise to trade these downturns and declines.
That sale along with taking profits in one of our positions (which appears at risk for a bigger decline now) has raised our cash position to 61%. We currently hold 5 stocks and 3 are in uptrends. Yes uptrends, despite the mini-crash in the sector.
Gold and gold stocks are obviously due to rally and if a rebound did not begin Friday then it should begin very soon. In the update we provided upside targets for Gold, GDX and GDXJ as well as Silver.
It is also important to note that GDX, GDXJ and Silver all underwent triangle breakdowns that project to downside targets that remain below Thursday's lows. A rally in the sector could setup another opportunity to go short. Whether that is soon or in a month or two remains to be seen.
Here is one more note. We looked at 12 rate cut cycles. During 10 of them the gold stocks began an advance an average of 2 months and median of 1 month after the Fed Funds rate peaked. (The Fed's last hike). During those 10, the gold stocks gained a minimum of 52% and an average of 185%. The conditions for the coming bottom are very similar to those seen at major lows around 1960 and 2000. Following the rate cuts then, gold stocks surged 300% and 600%.
Consider a subscription as we can help you navigate what lies ahead for the sector. After all, we just did so for subscribers with a massive profit in JDST and DUST. And we can help you get positioned in the juniors that have a chance to 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.
Subscribe to our service for only $149 and find out which juniors are great values and have massive potential over the next 12-18 months. (And we answer subscriber questions).
Subscribe for Only $149
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.
|
