Goldtent TA Paradise

GDX… PM stocks strong into the close.

1. Nautilus says:

   August 26, 2020 - 4:41 pm at 4:41 pm

   The question is, can it make a sustainable break above its recent peak? I personally don’t think so. I acknowledge that it’s possible it makes a new high, but I think it will drop right back into the range it has been in over the last 2 months.

   SIL:SLV has really left a bad taste for me, and it could be coloring my view, but the chart is the chart and right now it looks grim. That ratio is oversold so it might bounce for a week or two, but it’s one of those situations where something gets so oversold that it virtually guarantees long term weakness.

   • North says:

     August 26, 2020 - 4:49 pm at 4:49 pm

     That is the question and we will have to see what it does.

     • Nautilus says:

       August 26, 2020 - 5:08 pm at 5:08 pm

       I have to say, when I start to feel bearish like I am currently and have been for the last 6 weeks, things usually tend to get worse before they get better.

       For me the most important thing is the miners outperforming the metals and until they permanently take out the 2016 high, this is setting up like all of the other blips between 1995 and now.

       I imagine that if the 2016 high is taken out, it will be preceded by a violent shakeout that the banksters pull every single time. It’s hard to imagine a smooth ramp up from here to beyond that resistance level. That never happens in this sector.

       • North says:

         August 26, 2020 - 5:12 pm at 5:12 pm

         But… GDX is fourteen dollars above the 2016 high. And I don’t see it going back to it.

         • Nautilus says:

           August 26, 2020 - 5:23 pm at 5:23 pm

           I’m talking about gdx:gld. At this point for all we know it’s setting up just like 2006-2008. Sure the miners went higher during that time, but nowhere near what bullion did.

           Toss in the risk of mine nationalization and windfall taxation, and one would have been an idiot for investing in miners instead of metal over the last 40 years for anything but a swing trade. Until the ratio takes out that 2016 peak, they will remain one of the dumbest investments one could make. It’s time to “show me the money.” My whole thesis for buying these miners would be that they would crush bullion, and that just has not been the case, at least yet.

       • North says:

         August 26, 2020 - 7:25 pm at 7:25 pm

         Okay, the ratio. I was wondering about what you were referring to. Yes, the ratio has to improve to give the stocks their leverage they had from 2002 to 2006.

2. Fullgoldcrown says:

   August 26, 2020 - 6:47 pm at 6:47 pm

   Phys Phirst !

   Gold Stocks SUCK

   • North says:

     August 26, 2020 - 7:27 pm at 7:27 pm

     Another country heard from. 🙂