Charts That Interest Us – Gold Monthly, GDX, Dow and Dow:Gold Ratio
Doc is with us today to outline some of the key charts he is watching as a metals investor. It’s all about the long term charts and the fact that a sideways market for gold is positive but it will take some time for a major breakout.
Sideways action is not necessarily bullish. See $gold from 1993-1997. Went sideways to up the entire time and ended up breaking down into the final low in 1999.
There isn’t a fundamental thesis for gold any more. They’ve all been debunked over the last 8 years. QE good for gold? Nope. QT and rate increases good for gold? Nope. End of QT and rate tightening good for gold? Nope. Global QE good for gold? Nope. Rising stock market hood for gold? Nope.
At this point, I think the Fed could restart QE bigger than ever and gold would probably go down under the right circumstances (see 2013 for example). As long as yen stays weak, nothing else seems to matter. The correlation between yen and gold is tighter than ever.
Good summary……….JMO……..
As long as the price of physical gold and silver is determined by paper markets unbacked by physical and unregulated by the government, the price of physical gold remains rigged, fraudulent and criminal.
Ditto……..
I don’t think gold is a long term investment, its an anti thesis to western fiat concept and not to mention – its under constant manipulation by bullion banks.
But, what I have learned – buy for short term trading when its taken to woodshed. Bob Moriarty has been dead right about this. When DSI falls under 10, its a pretty good indicator there’s going to be a tradeable bounce.
Good comment Cali Joe.
Someone might look at a long term chart……..from 1970 to date….. 🙂
$35 to $1277……not to bad……. 🙂
https://youtu.be/sqAI_IHpqvQ?t=442
Trump looking very tired on Immigration.
Never going to be solved…….with congress…..and bitch peolsi …..that is evident.
Dreamers can keep dreaming…..
Country should go back to the Indians.
Yep……..I use to think differently, but, the white man put it to the Indians big time.
Indians should have just ran the Pilgrims off, as soon as they landed.
But, they had all those Wampum beads to get rid of…..LOL
FWIW, the $gold:$XJY ratio has been narrowing in for 7 years. If you look at the weekly chart, the long term bollinger bands, for example (100,2) or (200,2), are the narrowest they have been since at least 40 years. Obviously this can’t persist forever. Admittedly you would think that such a huge symmetrical pennant (7 years and counting) after a massive rise between 2000 and 2012 is a continuation pattern. But we obviously haven’t broken out one way or the other yet.
Miners are not moving. GDXJ has been rejected by the 20 day MA like 50 times. I am playing JDST, JNUG, and JNUG options with no movement. Pretty bad when 3x isn’t budging. I’m playing crypto now for more action.
They’re moving…. just in the wrong direction.
A turn of some kind is likely coming very soon…
http://schrts.co/ANgHrkjW
My silver juniors are holding up very well today considering silver’s action.
Look at SILJ. It has been decimated and is already well below the low you saw as a key low vs GDX a few months ago.
My AXU has held up well, so far, but others like EXK have been smashed into oblivion. And I have zero doubt that AXU can catch down in a heart beat, and likely will if silver continues to break down. -20 to -30% in a week wouldn’t shock me.
Actually, I spoke too soon. AXU closed down 5.5% and it looks like it is rolling over. Giant H&S top being formed that projects down to 60 cents once the neckline is broken.
The action across the silver sector is heinous.
IMO EXK will surpass its 2016 high in next wave but I have a feeling, it will go down under $1.50
I’ve been riding the slope of hope for 3 years.
Should have bailed on it all as soon as GDX lost cloud support on the daily chart a few weeks ago. That was a massive signal to get the hell out of dodge.
Based on the H&S in SILJ, it is headed to 6.50-6.75 eventually. Just ugly.
I have a feeling, metals and miners are taken to the woodshed. We will see..
I’m keeping my powder dry for that event. I also think it would be one heck of a trading opportunity.
$silver’s H&S top projects down to $14.00. Maybe we get a sucker’s bounce for a day or a bear flag between now and then. But I have a feeling it’s going to be more or less straight down.
I am holding out hope that $1267 holds, but I am questioning that bigtime now. This week’s candle is likely going to look terrible. It’s already producing a shooting star/topping candle as of today, which augers for more downside next week.
I may break soon. I wish I just stuck with the US stock indexes like all other other sheep. I can’t even recognize a bear market when it has been staring me in the face for 3 freaking years.
What’s “very soon.” And what do you consider a “turn”? Another bear flag? Would that be a turn?
There is absolutely nothing positive technically on any metal or mining chart. The only thing is they are oversold. The problem is, they are in a bear market, and therefore hitting oversold is and never will be a buy signal. If anything, shorts may decide to cover a little at some point soon, but I have no faith that it will generate anything more than a bear flag or disappointing sideways action.
SILJ hit a new multiyear low today. Confirmed bear market.
Very soon = days
I said “some kind” of turn because I don’t know what kind it will be.
IPT gave up nothing today despite SLV falling 1.44%. Based on the last 12 years, IPT’s action has been much more useful than AXU’s.
IPT is currently printing a black candle this week and is hanging over the lower weekly BB, which is beckoning. It’s going to be hammered tomorrow or next week, virtually guaranteed. It has a rendezvous with the weekly BB, without question. It will probably end up riding the band down to retest the low or to finally close its 2016 gap.
I didn’t say it can’t go lower and the 2016 gap doesn’t mean much. The US pink sheets listing is inferior.
http://schrts.co/sXXwfTRG
No black candle here:
http://schrts.co/bWJNyrab
I was referring to the weekly candle.
Here’s a chart for those who think that tariffs are good for the average guy:
https://kingworldnews.com/wp-content/uploads/2019/05/KWN-Boockvar-III-5162019-939×1024.jpg
https://wolfstreet.com/2019/05/15/the-most-splendid-housing-bubbles-in-canada-deflate-further/
Some just do not learn……
If $silver breaks to a new multiyear low, it’s probably headed to $5 in time based on the massive bearish consolidation over the last 4 years. It’s basically an upside down cup and handle. We have finished the handle and all that awaits is breaking the rim of the cup.
Here’s a chart for those that have a memory longer than an aardvark.
_____________
And here’s the amount of people that have better ideas about, how to deal with international trade. ___________________________🤔
As if you know good ideas when you see them. smh
The massive cup and handle breakout in the gold:silver ratio projects to 105. Yikes.
I bet it won’t get beyond 93.
In related news, gold has a P&F chart price objective of $1,950.
I pointed out a similar break out in dow:gold in 2017 and it hit its projected target at about $23 last year.
I see absolutely no reason to doubt such a beautiful breakout from reaching its projected target. these bearish formations in the metals sector have worked basically 100% for the last 8 years. I can’t remember a single one that wasn’t activated or that didn’t meet its projected target.
I certainly did not expect for all the corruption in the CFTC, to continue, after the election, so much for wishful thinking….The Trumpster appointed the same con men….should have known. The markets are rigged, and the same riggers are not going anywhere…Nothing has changed.
Doc if GDX test 19-20 range over next few months where do you see a possible upside target this time next year in 2020. Also will silver out perform gold next year??