GOLD Encounters Strong Dollar

Will the Trading Range bottom hold?

A rate increase at the March 15th FOMC meeting is more likely now after hawkish comments by two FED governors.  Also, the general markets are at all time highs, which could encourage even dovish Janet Yellen to go along.

Sold JNUG for a modest gain (best to take small bites here).

Happy Trades to You!

XAU Gold Index Nears Target

Will accumulation begin?

The JNUG setup, via a significant gap down open, did not materialize; however, by close of business it finshed down over 25%, on volume, and was caught at 7.41.  A possible gap down open tomorrow would be another great low ball entry point.

Top day trader oleman, now retired, mentioned years ago that three significant down moves are often followed by a large counter-trend rally. The rally in JNUG is expected soon, or may have already started.

Friday’s Hanging Man in GLD was followed by today’s Shooting Star.  As a fair representation of the Gold metal, this suggests a test of January lows, which should not happen if the miners are entering an accumulation phase.  An enigma.

Tomorrow’s GDP number, and Trump before Congress, should keep things interesting.  See the Youtube channel for more reports.

Happy Trades to You!

It’s Time to Accumulate Gold!

Weekly GOLD Roundup

As the old stock “accumulation and distribution cycle” kicks in for the miners, pickings will become better for value driven investors.  Traders who want volatility will welcome the data to be released next week, beginning with Tuesday’s significant fourth quarter GDP number, which should fuel some fireworks.  These are really great times for both the Gold investor and the trader.

Friday’s action in the precious, as typified by the XAU Index, is conclusive proof that we’re now in a downswing consolidation phase, and that a likely trading range is developing – something like that noted with the red hash lines:

Gold appears to be topping:

There is much more now at Youtube.

Happy Trades to You!

Another day, another “WHAT?”

“Metals Up. Miners Down.”  Again!

After its big gap down open, JDST showed real power on Friday by regaining the previous close (13.48) and throughout the day via multiple E-Builds.  Although wise day traders, and even swing traders, would have taken profits in the afternoon on its over 12% gain (14.42), those who held their positions in JDST may be rewarded on Monday with a gap up open, where events over the weekend will guide whether to hold, to sell, or to sell and counter long with JNUG.

Of course, they all must avoid the crazy Goldbugs!

Visit with us this weekend on Youtube.

Happy Trades to You!

Metals Up. Miners Down. WHAT?

As precious metals rise, the Gold and Silver miners do not always follow suit.  Being securities, they’re just one sector in stock and related markets.  When metals fall the miners nearly always fall with them, but the reverse is sometimes not the case.  This double whammy can take a psychological toll on folks and is why, for traders in particular, some profits should always be taken along the way.

Gold and Silver were up appreciably today but, as the XAU chart shows, a corrective phase is now probable for their miners.  A very important uptrend line was broken and lower prices are likely now in the cards.  An evolving trading range (red hash lines) was mentioned in yesterday’s Youtube brief.

When viewed as an opportunity for both traders and investors, this lemon can be made into some tasty lemonade.

Happy Trades to You!

XAU Break: Good GOLD Decline!

XAU’s important inverse-head-and-shoulder-line has broken, which portends a deeper downturn for the precious before its expected meteoric rise can begin.  The 89.02 downside target was too optimistic.  The new one is 83.46, where there is a significant gap.

After the FOMC minutes were released, and the market closed, I updated the chart:

A report on this and more is now at Youtube.

Happy Trades to You!.

NYSE Pump & Dump !!

Who are the Barrick and Goldcorp bagholders?

Both Barrick Gold (ABX) and Goldcorp (GG) unnaturally rocketed last week just days before the release (tomorrow at 2pm) of likely hawkish minutes from the FED’s February 1st FOMC meeting.  The release will be preceded by FED governor Jerome Powell’s luncheon presentation at the “Forecaster’s Club” in NYC.

The Dollar has been naturally strengthening, and questions should be asked and answered:

Who did the ‘Dark Side Boys’ screw this time around?

Where is the S.E.C. in all of this?

Not so happy trading this morning!

Washington’s Silver Was No Lie!

Weekly GOLD Roundup

Up through 1964, much of America’s coinage contained significant amounts of Silver.  Afterwards it became increasingly debased with lesser metals.  The Washington quarter-dollar pictured is one of the last from that more precious era.

This past week Gold was buoyed by Silver (SLV), which stubbornly held to its higher price levels.  The XAU Gold Miners Index did not reflect this as it went lower, through an important uptrend line.  Strangely, two majors – Barrick (ABX) and Goldcorp (GG) – broke higher with big volume.  The prognosis, though, is for recent lows to be tested soon.

JDST gave good gains to day traders on Friday, but for others the better course was to await Tuesday before developing short positions.  Patience must be a virtue for the rest of us.

Happy Trades to You!

“To the MOON, Alice!”

GOLD Trend Soon To End?

My numbers were hit today, but not without doubts.  No short taken.  Will awaken morn Tuesday, refreshed and ready.

Happy Trades to You!

GOLD Takeoff – Just Two?

Two Gold companies, the bellwhether Barrick (ABX) and Goldcorp (GG) made breakout moves today (Thursday), which are not apparent in others.  Is the short still a possibility?

Friday, going into a three day holiday weekend, will sure be interesting.

Happy Trades to You!