Gold stocks remain on short term sell signal, and if we are in a bull
market, prices should find support at the 200ema, which may be an excellent
entry.
The divergence as noted in the last report has resulted in lower prices in
both gold and gold stocks.
SLV - we took profits on our short position and will wait for a new set
up.
With one session left in the month, the US Dollar (USD) bounced off the
lower trading range of this over a year-long consolidation with an outside
reversal monthly candlestick, which suggests that the correction is complete
and more strength ahead in coming months. A rising dollar is not friendly to
the metals.
Summary
A correction is in progress in the gold sector, while the cycle has just
turned down recently. Expect lower prices overall until the cycle bottoms and
COT data becomes favorable.
Jack Chan is the editor of Simply Profits,
established in 2006. Jack bought his first mining stock, Hoko Exploration, in
1979, and has been active in the markets for the past 37 years. Technical
analysis has helped him filter out the noise and focus on the when-and leave
the why to the fundamental analysts. His proprietary trading models have
enabled him to identify the NASDAQ top in 2000, the new gold bull market in
2001, the stock market top in 2007, and the US dollar bottom in 2011.
Disclosure:
1) Statements and opinions expressed are the opinions of Jack Chan and not of
Streetwise Reports or its officers. Jack Chan is wholly responsible for the
validity of the statements. Streetwise Reports was not involved in any aspect
of the article preparation or editing so the author could speak independently
about the sector. Jack Chan was not paid by Streetwise Reports LLC for this
article. Streetwise Reports was not paid by the author to publish or
syndicate this article.
2) This article does not constitute investment advice. Each reader is
encouraged to consult with his or her individual financial professional and
any action a reader takes as a result of information presented here is his or
her own responsibility. By opening this page, each reader accepts and agrees
to Streetwise Reports' terms of use and full legal disclaimer.
This article is not a solicitation for investment. Streetwise Reports does
not render general or specific investment advice and the information on
Streetwise Reports should not be considered a recommendation to buy or sell
any security. Streetwise Reports does not endorse or recommend the business,
products, services or securities of any company mentioned on Streetwise
Reports.
3) From time to time, Streetwise Reports LLC and its directors, officers,
employees or members of their families, as well as persons interviewed for
articles and interviews on the site, may have a long or short position in
securities mentioned. Directors, officers, employees or members of their
families are prohibited from making purchases and/or sales of those
securities in the open market or otherwise during the up-to-four-week
interval from the time of the interview until after it publishes.
All charts courtesy of Jack Chan.
