Goldtent TA Paradise

GDX on verge of joining bull era

1. Steins1 says:

   February 24, 2020 - 9:52 am at 9:52 am

   The miners are still tepid. Bigger move last week so far.
   GDX and GDXJ only small moves so hope to see the vacuum effect soon………

2. Alex33 says:

   February 24, 2020 - 9:52 am at 9:52 am

   Miners very weak today, even with charts looking bullish. Why? Because gold miners are fully valued and need at least $1750-$1800 gold to trade higher towards the GDX 40 level.

   • Karl says:

     February 24, 2020 - 10:00 am at 10:00 am

     Not at all a disagreement, but instead 2 other reasons that do not contradict your reason. My reasons may be less significant.

     First, people who have invested in miners and other stocks and are scared or are facing margin calls may be selling stocks of all sorts, and possibly focusing on miners if they are uncomfortable with them. (If people have a pet stock that is underwater, especially an illiquid one, and they have to make a margin call, they will do what is usually the wrong thing and sell a stock that is holding up well.)

     Second, some of the cruder algorithms may be selling all stocks. Similarly any mining stocks that are in major general stock indexes are being sold automatically.

     • Steins1 says:

       February 24, 2020 - 10:41 am at 10:41 am

       This sounds about right to me Karl. I’ve used KL as one of my indicator. It popped big this morning then sold off about half it’s gain.
       Folks who bought much higher most likely bailing.
       Overall I can’t complain too much as the Sp/Plunger is up over 1 1/2%.
       The miners do react with a slingshot effect to gold and silver early then lead, Northstar’s and Patric’s charts do show that we still have some work to do in the miners.

3. Alex33 says:

   February 24, 2020 - 9:55 am at 9:55 am

   Even if gold would trade at $1800 next months, only GDX 37.50 will be reached I believe.

4. Patrick says:

   February 24, 2020 - 11:31 am at 11:31 am

   Remember… market loves to discount. When gold 1800$ how much of next leg up can be discounted in GDX component valuations? Or maybe it doesn’t work that way for GDX.