Editorials

Corrections are a good thing. As we wrote last week, they pave the way for new buyers and new adopters of the trend. In turn, the trend strengthens. During the bull market of the 2000s, the corrections in gold stocks were mostly long, multi-month consolidations.  The brief cyclical rebound from 2008 to 2011 was the … Continue reading “Healthy, Bullish Correction in Gold Stocks”

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It appears the Gold sector is in a correction that could become its most serious since March.  GDX has corrected 13% while GDXJ has corrected nearly 15%. Silver meanwhile has held up much better than Gold, which failed to break resistance at $1760/oz.  During the rapid rebounds of 2008 and 2016, corrections in the gold … Continue reading “Textbook Bullish Setups in Gold & Gold Stocks”

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The precious metals sector may have begun a correction on Wednesday.  The miners (GDX, GDXJ) sold off after reaching significant resistance levels while the metals are trading just below significant resistance levels.  We mentioned these targets in our article last week. GDXJ has pulled back a bit after testing 7-year resistance while GDX has pulled … Continue reading “Precious Metals Hit Resistance”

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The precious metals sector could currently be trading within a bullish consolidation. The metals have consolidated and corrected for one month while the shares have been consolidating for three weeks.  Gold and Silver have bounced from support several times while the shares have traded around their highs over the past three weeks. The sector (aside … Continue reading “Near Term Upside Targets in Gold, Silver & Miners”

Gold Stocks could be at a tricky juncture. They have already made significant gains, yet history, coupled with the current bullish conditions, suggests more gains coming and probably significant gains.  However, corrections of 15%-20% during these rebounds are normal and sometimes frequent (like in 2008-2009).  One doesn’t want to risk having to chase strength, but … Continue reading “Are Gold Stocks Too Overbought?”

In February, we wrote about the impending breakout in gold mining stocks and how it might compare to the history of breakouts in gold mining stocks.  GDX closed last week at a fresh 7-year high and in both daily, and weekly terms closed +9% above the previous high.  It now has a measured upside target … Continue reading “A Potentially Historic Breakout in Gold Mining Stocks”

The precious metals sector has reached an interesting juncture. After a rip-roaring recovery, Gold and the largest and most important gold mining stocks ETF, GDX have hit multi-year resistance.  Gold was able to surpass its pre-Corona peak at $1700 and trade as high as $1789 before selling off. From 2011 to 2012, Gold peaked three … Continue reading “Gold & Gold Stocks Reach Multi-Year Resistance”

Over the past 100 years, there have been seven bear markets or crashes of 35% or higher. After or during every decline but one, the gold stocks enjoyed outstanding performance. It is essential to understand the underlying fundamental catalyst. A crash and recession leads to aggressive rate cuts and falling real interest rates, which in … Continue reading “Gold Stocks Performance Following Market Crashes”

The historical action of the precious metals sector over the past few weeks has continued. The strong recovery in GDX, GDXJ, and Silver has potentially invalidated the technical breakdown that occurred during the crash. It appears to be a failed breakdown. Furthermore, Gold was looking vulnerable on the weekly, and monthly chart yet was able … Continue reading “From a Failed Breakout to a Failed Breakdown”

The past three weeks have been historic.  The stock market experienced its fastest 30% drop in history. GDXJ crashed by 50% within two weeks! We have never experienced anything like this in our sector. The speed of the crash was worse than in 2008.  This has been akin to a 19th-century style panic. I was … Continue reading “When Will Gold Bottom?”