Loading ...GDX Daily could hit 46 and 50 without a major pullback
Think of the crazy things that the nasdaq did in its bull market. Now we are seeing the counter punch by the PM bull. Stockcharts says by its pivot points that we are now moving toward resistance at 46 and then 50. But just my euphoric, amateur opinion of it. Do your own DD. What do you think?
Absolutely. In a word EARNINGS. Sometimes I wonder if Carl and I are the only ones looking at EARNINGS. The GDX has KL AEM KGC which have reported. It is no coincidence that they are rocketing higher. EARNINGS started to be reported this last week and it continues until mid month. Gold miners used a $1550 first quarter gold price and the second quarter is $1720ish. Assume they produce the same amount of gold and their gross margins using a 10% increase in gold price lead to massive adds to already clean balance sheets. One month into the third quarter we have gold prices another $250 higher than second quarter already preparing us for another great third quarter. Overbought? We have the cleanest balance sheets, lowest real valuations, sequential quarterly rises in real EARNINGS unlike most other accounting tricks used in mostly financialized stock reporting in the non gold world. Sector looks cheap.
Thank you, Noman. Yes, I have been thinking of earnings recently. You make a lot of good points.