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Tuesday, December 9, 2014

GOLD AND MINERS CHARTS: you won't believe what happens next!


Boo-ya!

I await Ritholtz's next condescending mockery of gold and gold miners. I'll also be happy to hear his stories of what trades he made this year that happened to earn a 25% profit in one week.

Barry, you've become a contrary indicator! I laugh!

Anyway, here are the critical charts for today's goldbug news:




Gold has popped above the SMA(50), which is one of those stupid arbitrary numbers that Wall Street Whitey pays a lot of attention to. There's no fundamental reason to care, but there is a psychological reason to care, and thus TA.

And silver?

 Even silver's popped above its SMA(50), which is funny considering it's a stupid by-product metal and has a much worse supply picture than gold.

Miners?


GDX is also peeping above its SMA(50) to see if all is clear. In doing so it's threatening to print a higher high, which is the definition of an uptrend.

The point of the SMA(50), aside from the psych bit above, is that it can mean a new trend: GDX was something like 30% below its SMA(50) in the last downtrend, so why can't it pop to 30% above the SMA(50) now?

And that means free money for me, so I'm interested.

Too bad for all those honky crackers who are short the miners right now, eh? Wow, what a can't-fail trade, eh Whitey?

Stupid hedge fund clowns. Get your heads out of the cocaine and quit following the herd.

And GDXJ?


Still far below its SMA(50). Then again, it's full of miners that are cash-flow negative, like Argonaut, so you'd expect the GDXJ action to suck.

Then again then again, companies like PG and DPM who don't  (as far as I know) suck are also part of this junior universe, and have also been mercilessly beaten down, so maybe we can buy the better ones and they'll pop faster than the GDX?

And the key to all this?


Gold ex-USD has printed a higher high. Who's the guy who made this the centrepiece of his long-goldminers strategy? Hm? Who? Who?

I've still got 2/3 of my HGU (wanted to put cash in my account), and some BTO, RIO, DPM, PG and DNA. I'm embarrassed at being something like 60% in the miners, but then again that's how you maximize profits, right?


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