An objective look at gold and gold stocks
Words of caution: public readers of my commentaries should exercise their own judgment as to whether to buy or sell anything. Never trade based on other people's analysis. Knowing which way to place our bets is only half of the formula to success. Wishing you peace and profits...
Lets first look at gold
As shown previously in our January special report to subscribers, the daily 200ema has acted as support to all pullbacks during this gold bull market, and has done it again. Prices have now surpassed the Dec high confirming that the pullback is now complete.
The weekly gold chart confirms the same as the weekly 50ema has also acted as support for all pullbacks. MACD is now positive confirming the breakout.
Gold stocks as represented by the $HUI
Our breakout model - is still far from confirming a breakout for the $HUI.
Graph #1 - shows the breakdown
(circled) in Jan 2007, and in the past, that has led to a sharp
sell off before a major breakout occurs. Perhaps this time will
GDX - nevertheless, GDX is on a buy signal and we will continue to accumulate upon set ups. More details for subscribers in this weekend's update.
XGD.TO - Canadian version of GDX is also on a buy signal, and we'll have more details as how to further accumulate positions in our ETFs, in this weekend's update to subscribers.
End of report.