Tag: gold stock index

It Has Begun!

It Has Begun!

The S&P 500 Index (chart below) shows a top in May 2015, a correction into August, and a deeper fall this month – February 2016. Look out below. The Shanghai Composite Index looks grim. Both markets are due for a bounce with more downside thereafter. Gold mining stocks (the GDX) have rallied over 50% since the January low. They should correct and then rally for several years. The chart of gold looks similar. It has broken out of a long term downtrend, looks ready to correct, and then continue its rally past all-time highs. The silver chart is showing the same message as gold – a bottom, breakout, possible correction, […]

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Gold Stands Strong After US Fed Taper II

| January 29, 2014 | Category: Price
Gold Stands Strong After US Fed Taper II

Gold’s current relative strength is not only confirmed by weakness in US equities, but also by a weakening US dollar and the gold mining complex. The gold miners recently broke through important resistance (see blue line on the following chart) and are holding up quite well. For us, the most surprising evolution of today was that gold miners went significantly higher after the FOMC news, although they were neutral before, amid a weakening stock market.

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Is Santa Coming Early for Gold & Gold Mining Stocks?

Is Santa Coming Early for Gold & Gold Mining Stocks?

If you own physical gold, gold mining stocks or plan on buying anything related to precious metals before year end, you are likely going to get excited because of what my analysis and outlook shows. Since gold topped abruptly a year ago (Sept 2011) with a massive wave of selling which sent the price of gold from $1920 down to $1535, technical analysts knew that type of damage which had be done to the chart pattern could take a year or more to stabilize before gold would be able to continue higher. Fast forwarding twelve months to today (Oct 2012). You can see that gold looks to have stabilized and […]

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HUI Technical Chart

| September 15, 2012 | Articles: Gold Silver Stocks
HUI Technical Chart

The HUI is closing in on a KEY technical resistance level on its weekly chart at the 50% Fibonacci Retracement level of its last year summer high and this years trough. That level is basically right at the high made in today’s session as it comes in beginning at the 504 level. If the HUI closes the week through this level on a good strong note, look for the index to move towards the 540 level. Note that all of the major moving averages, whether the shorter term 10 and 20 week or the 50 week moving average are either turning higher or flattening out and beginning to turn.

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Why Are The Silver Miners Outperforming?

Why Are The Silver Miners Outperforming?

We have seen major developments in the silver mining sector (SIL) which shows that the majors are hungry for the juniors.  Coeur D’Alene (CDE) has made some strategic investments in some juniors silver explorers in British Columbia and Mexico, Hecla (HL) made a bid for U.S. Silver and Silver Wheaton (SLW) has signed its first major royalty deal in years.  This signals that the smart money believes we are near a bottom and we may just be at the beginning of a major move in the junior silver miners.  The majors are hungry for new deposits in mining friendly jurisdictions.   Since Bernanke’s Jackson Hole speech that sparked a risk […]

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Gold Stocks: History Argues for More Upside

Gold Stocks: History Argues for More Upside

Gold and silver stocks are not only the most volatile sector but the highest beta sector. Therefore the percentage moves can be quite exaggerated relative to the market. Currently, the shares have emerged from a W bottoming pattern. They have gained substantially (in percentage terms) in just the past month. I wanted to consult history and in particular the rebounds following the bottoms in 2000, 2005 and 2008 to get a sense of the reasonable upside potential over the coming months. Judging from history, one should not be alarmed about the recent gains because these rebounds tend to run much longer and higher. Below we chart the HUI in weekly […]

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Gold-Stock Breakout

Gold-Stock Breakout

After weathering a long consolidation followed by a major correction, gold stocks remain deeply out of favor today. But this bearish sentiment is slowly yielding as gold powers higher in its usual autumn rally. Gold stocks are starting to show signs of life again. And after their strong advance since late July, they are now on the verge of a major upside breakout. Odds are this event will herald a major new upleg. Despite the gold-stock sector commanding some of the biggest gains of the past decade, gold stocks have become a four-letter word. The flagship gold-stock index, the HUI, essentially stalled out way back in late 2010. Then it […]

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Near-Term Targets for Gold, Silver and Mining Shares

Near-Term Targets for Gold, Silver and Mining Shares

It’s amazing. Suddenly, everyone is bullish again. Two months ago you couldn’t give away mining shares or Silver. No one wanted to buy. After back to back weekly gains (for essentially the first time since January) the gold bugs are back and proud. Bullish calls are coming out of the woodwork. This is good and all but as analysts our job is to stay ahead of the market, rather than react to or follow it, as so many professionals do. That being said, today we give you a quick synopsis of where things stand and the potential risks coming into play. Below we chart Gold and Silver in weekly form. […]

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Gold, Silver, Mining Stocks: Breakout Time, Not Bubble Time

Gold, Silver, Mining Stocks: Breakout Time, Not Bubble Time

Admittedly, for over a year and a half precious metals investors have been going through a time for testing of our essential position in wealth in the earth equities and bullion.  Investors were experiencing pain and panic at a time that it was easier to throw in the towel as the technical charts appeared to be broken as gold (GLD) and silver (SLV) went below the 200 day moving average.  We advised patience and fortitude despite an onslaught from fellow analysts and media coverage which were attempting to shake out our readers.  Now precious metals and miners appear to be making constructive and powerful breakouts. The casino has ever been […]

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Double Bottom Breakout In Junior Mining Stocks Before Labor Day

Double Bottom Breakout In Junior Mining Stocks Before Labor Day

There is an economic malaise all over the world, record unemployment and soaring deficits, yet the general markets are hitting new highs.  How can a market rise despite all the negative gloom and doom economic numbers? We believe the market and intelligent capital is coming to the realization that the Central Banks through the use of Quantitative Easing and record negative interest rates may start a stagflation which is when commodity prices rise higher in the midst of poor economic conditions.  This occurred in the Ford and Carter administration when gold, silver and mining stocks soared. Yields are beginning to rise rapidly since we called the top on treasuries on 7-25-12. Supply […]

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Gold Mining Stocks Continue to Disappoint But Not For Long

Gold Mining Stocks Continue to Disappoint But Not For Long

It is an endless debate for investors interested in gold. Should they buy a direct play on the gold price, either gold bullion itself or even so-called paper gold with an ETF such as the SPDR Gold Shares(NYSEArca: GLD)? Or should they invest into gold equities, particularly the larger, higher quality gold mining companies? Recent history suggests the answer is gold itself. According to Citigroup, physical gold has outperformed global gold equities 120% percent of the time over the past 5 years. Stocks of the bigger gold mining firms seem to react adversely to bad news (which is normal), but the problem is they react with no more than a yawn […]

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Gold right at the Top of its Recent Trading Range

Gold right at the Top of its Recent Trading Range

Gold has pushed to the very top of its recent trading range as it works within the confines of its consolidation pattern noted on the chart below. It either mounts a solid breakout this time around or it will fall back towards $1600 and slightly below once again. I have noted that for the last 5 weeks or so, the lows have been slowly creeping higher hinting at market strength. It simply needs a spark, something to ignite it and push it past the strong selling pressure emerging between $1620 – $1630. Today’s strength is predicated on news out of China showing its economy slowing also. Traders are expecting the […]

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World Navigating Troubled Waters: Gold and Silver Will Move Higher As Safe Haven

World Navigating Troubled Waters: Gold and Silver Will Move Higher As Safe Haven

We have climbed the wall of worry for over twenty years as wealth in the ground becomes increasingly desirable in a world that is threatened with the ghosts of depressions past.  We observe the doubters who regale us with such headlines as “The Fed’s Big Move Is No Solution” or a noted economist writes that he senses the tone of urgency of Fed Governor Janet Yellen’s remarks that “the scope remains to provide additional accommodation.”  Yellen’s comments are really repetitions of her boss The Fed Chairman Ben Bernanke. The world is navigating very troubled waters.  For over four years the top Central Banks orchestrated by the Federal Reserve Chief injected […]

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Mining Shares Continue to Outperform the Broader Equity Markets

Mining Shares Continue to Outperform the Broader Equity Markets

The last time we had a THREE CONSECUTIVE WEEKS during which the mining shares outperformed the broader US equity markets was in late October/early November of 2011.  While the  month of May this year has been attrocious for the S&P 500, it has been an excellent month for the miners. June is starting out on a good note to say the least as we witness today’s strong upmove in the mining shares. My interpretation of this event is that today’s payrolls number, which was so horrible that it cannot have any sort of positive spin placed upon it, has jolted traders into moving more and more to the view that […]

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