Post by jeffolie on Feb 28, 2013 13:05:48 GMT -6
Falling Gold Miners boring, declining action
Gold mining stocks have been promoted as buying gold cheap, buying gold on steriods, leveraged gold action strategies, etc. Now that gold has moved 2 YEARS SIDEWAYS, boring and declining action the Gold Miners stock prices have move the same 2 YEARS SIDEWAYS, boring and declining action
boring and declining action
2 YEARS SIDEWAYS, boring and declining action
The lack of speculative large investors buying or driving the gold futures contracts most likely reflects the lack of price movements from the significantly noticeable 2 YEARS SIDEWAYS, boring and declining action over the last few years.
my jeffolie view: the metals markets most likely will remain boring because the Central Banks and most significantly the FED remains in control of maintaining low interest rates with MONEY SUPPLY LOCKED UP IN BANK RESERVES or merely asset building for type 1 consumers who buy new cars without having the money supply reach into the rest , the 80% or type 2 consumers who struggle to buy basics while suffering higher rents, higher healthcare costs, higher college tuitions, higher taxation, higher gasoline expenses. ... my view continues to be no significant American inflation reported in 2013 and 2014 until a Dollar crisis most likely not to happen until at least 2015 to 2016.
=======================================
Time to “Catch a Falling Gold Miner???”
Posted by Chris Kimble on 02/28/2013
The Power of the Pattern reflected on 2/5 in the chart below, that despite Gold Miners being very weak over the past few months, they could get "Whacked on the Head" again. (see post here)
Since the 2/5 posting GDX has declined over 9% in 23 days.
blog.kimblechartingsolutions.com/wp-content/uploads/2013/02/minerswhackedagainfeb53.gif
Has it paid to try "Catch a Falling Knife" when it comes to the miners of late? No!
Many have continued to site that the Gold-Gold Stock ratio is at 30-year lows (see lower left chart below) and now is time to buy the miners...they have said this for months, losing money month after month!
Just because a ratio is low, is that a good enough reason to buy? This ratio has been low for years and that hasn't stopped GDX from losing almost 30% of its value since last summer!
blog.kimblechartingsolutions.com/wp-content/uploads/2013/02/minersratiocatchafallingminerfeb281.jpg
The upper right chart reflects a key breakdown at a potential support point earlier this month for GDX, which once broken a quick decline took place.
Where could potential support come into play for the miners? The lower right chart reflects a 10-year rising channel for the XAU index, with support coming into play around 10% below current levels.
The Power of the Pattern reflects this could be a point where Gold miners could see a bounce in price. If Gold breaks support and falls to the $1,300 support level (see post here), the miners could reach this support line at the same time.
From a long-term perspective (not a trading view), buying Gold at $1,300 and the miners on the 10-year rising support line would look to be a very interesting risk/reward entry point, should they reach these key levels.
blog.kimblechartingsolutions.com/2013/02/time-to-catch-a-falling-gold-miner/
Gold mining stocks have been promoted as buying gold cheap, buying gold on steriods, leveraged gold action strategies, etc. Now that gold has moved 2 YEARS SIDEWAYS, boring and declining action the Gold Miners stock prices have move the same 2 YEARS SIDEWAYS, boring and declining action
boring and declining action
2 YEARS SIDEWAYS, boring and declining action
The lack of speculative large investors buying or driving the gold futures contracts most likely reflects the lack of price movements from the significantly noticeable 2 YEARS SIDEWAYS, boring and declining action over the last few years.
my jeffolie view: the metals markets most likely will remain boring because the Central Banks and most significantly the FED remains in control of maintaining low interest rates with MONEY SUPPLY LOCKED UP IN BANK RESERVES or merely asset building for type 1 consumers who buy new cars without having the money supply reach into the rest , the 80% or type 2 consumers who struggle to buy basics while suffering higher rents, higher healthcare costs, higher college tuitions, higher taxation, higher gasoline expenses. ... my view continues to be no significant American inflation reported in 2013 and 2014 until a Dollar crisis most likely not to happen until at least 2015 to 2016.
=======================================
Time to “Catch a Falling Gold Miner???”
Posted by Chris Kimble on 02/28/2013
The Power of the Pattern reflected on 2/5 in the chart below, that despite Gold Miners being very weak over the past few months, they could get "Whacked on the Head" again. (see post here)
Since the 2/5 posting GDX has declined over 9% in 23 days.
blog.kimblechartingsolutions.com/wp-content/uploads/2013/02/minerswhackedagainfeb53.gif
Has it paid to try "Catch a Falling Knife" when it comes to the miners of late? No!
Many have continued to site that the Gold-Gold Stock ratio is at 30-year lows (see lower left chart below) and now is time to buy the miners...they have said this for months, losing money month after month!
Just because a ratio is low, is that a good enough reason to buy? This ratio has been low for years and that hasn't stopped GDX from losing almost 30% of its value since last summer!
blog.kimblechartingsolutions.com/wp-content/uploads/2013/02/minersratiocatchafallingminerfeb281.jpg
The upper right chart reflects a key breakdown at a potential support point earlier this month for GDX, which once broken a quick decline took place.
Where could potential support come into play for the miners? The lower right chart reflects a 10-year rising channel for the XAU index, with support coming into play around 10% below current levels.
The Power of the Pattern reflects this could be a point where Gold miners could see a bounce in price. If Gold breaks support and falls to the $1,300 support level (see post here), the miners could reach this support line at the same time.
From a long-term perspective (not a trading view), buying Gold at $1,300 and the miners on the 10-year rising support line would look to be a very interesting risk/reward entry point, should they reach these key levels.
blog.kimblechartingsolutions.com/2013/02/time-to-catch-a-falling-gold-miner/