GDX – Watch The Price Action and Be Careful
Jordan Roy-Byrne, Founder of The Daily Gold shares his thoughts on the GDX chart. We discuss the oversold and low sentiment conditions but take a step back to understand that if a decent bounce does not happen it foretells a pretty bearish outlook. He also breaks down how gold looks stronger than the stocks.
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Hey Bob, you are not wrong about those worries int he world however they do not necessarily drive markets. The trade wars/currency wars are a new thing and have had some impact on the markets. However the Middle East has been in shambles for decades now and the US is only going into more debt. I’m sure it will all matter at some point but for investors I feel it is important from investors to look at chats and understand where where money is going. I hope this makes sense…
Just to add to Cory’s comment:
1) More knowledge is reflected in the price action than any investor can integrate by studying news;
2) While it is certainly helpful to understand macro factors, it isn’t much help in timing, while chart analysis is.
Two essential arrows in the quiver. Sentiment is another.
Completely agree GH. Well put buddy!
What should one infer from a widening bid-ask spread on physical precious metals.
That’s a good question CFS. Maybe just further shows that there are no buyer or sellers out there?
As much as I hate to admit it, Jordan has been pretty dead on in his views. As Doc said yesterday, this market will whipsaw us all to death. It seems like the only relatively safe plays that are getting a bid are the royalty cos and streamers. At least with those you make a little income in exchange for being patient. I keep thinking the gold market (and the USD) want to turn, but they don’t. Even the Fed staying flat on rates had little reaction. Geez.
Avino Silver (ASM), looks like it might have just put in a double bottom from early July on the spike low this morning. Watching.
On Avino there is positive divergences from early July in both RSI and the Slow Stochastic.
The Americans and Chinese are in the midst of a trade war / currency war. America’s borrowing requirements are exploding. The Middle East is going to hell in a handbasket. I don’t see how the chartists can separate technical analysis from macro-economics.