Saturday, November 22, 2014
MICKEYMAN SAYS OMG NOW IS THE TIME TO HOLD GOLD MINERS
World Complex - OMG NOW IS THE TIME TO BUY GOLD MINERS!!!!1!
I dunno if it's enough of a sample size just yet, but his data does seem to say that gold-USD correlation has now flipped to positive.
Which btw I thought might be seen if there was an unwinding of the long-USD-short-GDX trade. Because GDX is too tiny a pool for pair-trade elephants to flop around in.
I don't think it's the end of gold miners sucking™, but I do think it really looks like a safe time to play a quick (weeks or months) rebound.
Anyway, maybe if GDX and GDXJ do well enough in this little rebound, it'll reduce the level of disdain in the market for miners, and we can be on the way to building a real base for the next longer-term rise. After all, the S&P shouldn't be booking >10% wins for the next few years, while (as we smelly goldbugs know) junior miners can book you 50% wins in just a couple months.
We've got the action, bitches. Too bad the past 3 years of it has been to the downside, but hey, if even just that negative bias left the market it would make for fun trading ahead.
Anyway, we'll see. I would doubt the possibility that a bottom was in, if Ritholtz hadn't spent the past two weeks baiting goldbugs daily with end-of-gold dooooom stories.