Thursday, April 16, 2015
Now THIS chart is why you should be paying attention to junior miners
You've got a bunch of insto clowns making smarmy little predictions about how they expect continued gold weakness into the future.
Please understand that they've made those same predictions over the past 2 years, and they've continued to be right, so that's why they keep making them.
I ignore them. The gold chart has already spent two years looking like crap, and these white-ass honkies have continued to make the anti-gold call for all that time. There can be no more negative sentiment added to the gold price from these sources.
With that in mind, as you know I've kept watching gold ex-US, because a) US dollar strength has hidden an important ex-US gold move and b) Americans don't buy gold, so the price of gold in a foreign currency is more important than the price of gold in US dollars.
And in the weekly chart, gold ex-US has looked like this:
It started recovering last November. No slight against Mickey Fulp, since it was one of his writeups that made me pay attention to gold last November: but if he thought that gold smelled different last November, even subconsciously, then some other people did too, and maybe that new positive sentiment is something that has yet to be baked into the gold price.
But more importantly, even though there are loads of miners out there with shitty garbage charts like B2Gold, you can also find too-good-to-be-true to-da-moon-Alice stock charts like this:
Oh, you clicked through did you?
That looks like a cup-and-handle pattern, though a cup and handle is supposed to be a continuation and LSG was bottoming the past 2-3 years, so instead maybe it's a very long and messy inverse head and shoulders (left shoulder not shown).
Either way a break above $1.20 targets something stupid like $4.80*.
No I don't own any LSG because that is a totally bullshit target to me.
But the rest of the market obviously would feel the same way about that stupid kind of target, and that's what you want when you go long. And I'm seeing these potentials pop up on so many damn charts that I'm getting convinced the bottom is already in.
I don't expect a final washout, unlike people as varied as Rick Rule or Jordan Roy-Byrne, because they do expect a final washout to be possible and thus so does everyone else, probably. But if you haven't had a final washout yet, you ain't getting one now.
That's my opinion. DYODD, I am not an investment advisor, this blog is not an investment service but rather a place to post videos of martial arts chixxx.
* - $4.80 because the bottom is $0.30 and the peak was $1.20, so on a log chart the target is (1.2/0.3)*$1.20. And yes you're supposed to use log charts: only morons use linear scale charts.