Saturday, January 3, 2015
Some weekend goldbug charts, and then a rant
Well, these are all interesting:
GDX has broken above its SMA(50). That looks positive. Are we going to get another January pop like Mickey Fulp promised?
If so, let's just remember to sell by PDAC. I can't count the number of times I've been going down that escalator to Moria on Friday morning, checked my phone, and saw a sea of red as gold gets instantly monkey-hammered down $100 and the junior miners all get puked into an empty book.
GDXJ's chart isn't as inspiring. Then again this ETF is full of garbage.
B2gold has popped above its own SMA(50). Still, the problem I have with B2 is that everyone who bought this stock in the past 4 years is now underwater; why would people be buying at $2 if they can sell at $2 and get out at a wash?
DNA's been acting very interesting. Does the cup in December target $0.90, or does the H&S since September target $1.15? I think the H&S target is illegitimate because the right shoulder is too large and doesn't have enough volume. But $0.90 is apparently a fair price for this stock.
I would just warn Dalradian investors, though, that they are operating in a country famous for its leprechauns. Leprechauns use magic, can turn invisible, and love gold: how is Curraghinalt ever going to make money after the leprechauns find out about all the gold there?
Seriously, buddy, this looks like fucking Lydian all over again, except instead of the Russians stealing the gold, it's the leprechauns.
Gold ex-USD is still healthy, and a break above 4.9 here should still mean we're off to the races. If that comes Monday, man that'll be interesting.
By the way: remember how all those people have been blathering about gold being "dead"? And how about those clowns who puked gold on Friday morning along with oil, only to see gold crawl back to $1190 by the end of the day?
When do you think Wall Street Whitey is going to realize that gold is not oil?
Actually, when do you think Wall Street Whitey is going to realize that nearly 4000 tons of physical gold is still bought for consumption every year, and only 1000 tons of that comes from recycling?
Seventy five percent of all the gold bought every year has to come from a mine.
The fucking US TIPS yield isn't magically creating three thousand tons of physical gold a year.
The 30s-2s spread isn't magically creating three thousand tons of physical gold a year.
The S&P 500 bull market isn't magically creating three thousand tons of physical gold a year.
The appreciation of the US dollar isn't magically creating three thousand tons of physical gold a year.
Three thousand tons of gold every year has to come from a mine.
You'd think that Wall Street Whitey, still plowing money into Emerging Markets despite them having gone nowhere for 4 years, would see the better story in gold.