February 19, 2018, 5:27 AM
February 16, 2018, 7:30 AM
“Not much happened yesterday” – one might say after looking briefly on gold, silver and mining stocks’ charts. And they would be correct. But they would probably miss the key three developments that indeed happened yesterday outside of the precious metals sector that can have enormous impact on its short-term direction. What are they?
February 15, 2018, 8:38 AM
Tuesday’s session was accompanied by volume that was the lowest this year, at least in gold. Yesterday’s volume was definitely not in line with that. We saw one of the biggest daily volumes of 2018 in gold, silver and mining stocks as the entire sector soared. It’s a clear buy signal in the eyes of many. But should something that appeals to almost everyone be automatically viewed as appealing?
In the final part of his 7th letter to Lucilius, Seneca writes the following:
Lay these up in your heart, my dear Lucilius, that you may scorn the pleasure that comes from the majority’s approval. The many speak highly of you, but have you really any grounds for satisfaction with yourself if you are the kind of person the many understand? Your merits should not be outward facing.
Answering our previous question: no – in the case of investments, the fact that something is popular or commonly viewed as something is definitely not enough to blindly accept it. We’ll analyze the situation thoroughly without telling the market what it should be doing in light of either popular beliefs, or our own trading positions. This way, we’ll get to the best conclusions. So, what's really in store for gold for the coming days and weeks?
February 14, 2018, 2:38 PM
February 14, 2018, 11:34 AM
February 14, 2018, 8:12 AM
The general stock market stole the spotlight just a few days ago and the consequences of the big decline and the subsequent upswing have not yet fully played out. The S&P 500 is in a very tense situation, which is particularly important for us – precious metals investors – because the way in which stocks will move is likely to determine the way in which mining stocks will move. How to tell what’s going to happen and how to position oneself to profit on this situation? One of the key clues comes from the place where one might not expect it. From the Japanese yen.
February 13, 2018, 7:42 AM
Gold, silver and mining stocks finally rallied yesterday. The upswing continues in today’s pre-market trading as the USD Index is testing the 90 level, moving a bit below it. That’s the first real rally that we saw this month. The key question is – have we just seen the 2018 bottom?
February 12, 2018, 8:08 AM
The huge decline in mining stocks along with the general stock market was the key event of Friday’s session. The only thing that was more interesting, was the subsequent rebound. Main stock indices ended the session higher, the GDX reversed the entire decline, and the HUI and XAU indices corrected only half of the previous decline. Gold and silver were mostly unmoved. What should one make of all this?
February 9, 2018, 12:41 PM
February 9, 2018, 7:43 AM
The mining stocks declined in their usual way yesterday, but there's little else that they could do in light of a big slide on the general stock market. However, gold and silver moved higher, and the shape of yesterday's session might appear as a reversal to some. Did we really see one? There's one reliable factor that can help us determine it.
February 8, 2018, 8:00 AM
Taking on the biggest short position ever based on the Jan 26th session certainly proved to be a good and profitable idea, especially in the case of silver and mining stocks. However, it doesn’t mean that the precious metals sector is going to decline indefinitely – there will be a major bottom and even before it is seen, there will be corrective upswings along the way. Some of them will be very tradable opportunities to increase the profits. Where’s the best nearby opportunity to switch from short to long positions?
February 7, 2018, 7:49 AM
The price of no asset can move up or down in a straight line, so why should mining stocks be any different? They have been declining relentlessly for almost 2 weeks, erasing more than 10% of their value. Sharp? Definitely. Unsustainable? Perhaps. When will the turnaround take place?
February 6, 2018, 7:51 AM
The general stock market stole the spotlight yesterday as it declined most profoundly in years. Some investors have likely expected the precious metals market to soar in such a scenario, but you knew that this was not the likely course of action. Indeed, gold’s reaction was barely visible. Metals moved a bit higher, but mining stocks ended the session lower. So why did gold move higher at all? Actually, there might have been an entirely different reason for gold and silver to move higher, other than the decline in the stock market. Just because something or someone is in the spotlight doesn’t make it or them important or relevant. Was the decline in the stock market as important for gold as Kim Kardashian’s new photo shoot?
February 5, 2018, 8:03 AM
Silver was just breaking to new highs, gold stocks (HUI) were above the 205 level and gold was at levels not seen since August 2016. Gold and silver bulls were cheering. They are not cheering anymore. Even though the above was the case just several days ago, it was all invalidated, just like we expected it to be. Based on what happened on Friday, silver and mining stocks are at their new 2018 lows and their entire 2018 performance is a one huge bearish reversal. Where do precious metals go from here and how to profit from it?
February 2, 2018, 5:21 AM
All eyes are on Bitcoin which decisively broke below the $10,000 mark (we are profiting on this decline, by the way), but it doesn’t mean that the situation in the precious metals market is dull. In today’s analysis we have two interesting developments to comment on. The first one is the USD’s move lower, its implications and the strength of the reaction in the metals and miners. The second thing is putting yesterday’s moves into proper perspective – and checking if anything changed regarding breakouts and breakdowns. Is the USD Index about to resume its 2018 slide and will gold soar above its 2018 high shortly?
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