• 702 days Will The ECB Continue To Hike Rates?
  • 702 days Forbes: Aramco Remains Largest Company In The Middle East
  • 704 days Caltech Scientists Succesfully Beam Back Solar Power From Space
  • 1,104 days Could Crypto Overtake Traditional Investment?
  • 1,109 days Americans Still Quitting Jobs At Record Pace
  • 1,111 days FinTech Startups Tapping VC Money for ‘Immigrant Banking’
  • 1,114 days Is The Dollar Too Strong?
  • 1,114 days Big Tech Disappoints Investors on Earnings Calls
  • 1,115 days Fear And Celebration On Twitter as Musk Takes The Reins
  • 1,117 days China Is Quietly Trying To Distance Itself From Russia
  • 1,117 days Tech and Internet Giants’ Earnings In Focus After Netflix’s Stinker
  • 1,121 days Crypto Investors Won Big In 2021
  • 1,121 days The ‘Metaverse’ Economy Could be Worth $13 Trillion By 2030
  • 1,122 days Food Prices Are Skyrocketing As Putin’s War Persists
  • 1,124 days Pentagon Resignations Illustrate Our ‘Commercial’ Defense Dilemma
  • 1,125 days US Banks Shrug off Nearly $15 Billion In Russian Write-Offs
  • 1,128 days Cannabis Stocks in Holding Pattern Despite Positive Momentum
  • 1,129 days Is Musk A Bastion Of Free Speech Or Will His Absolutist Stance Backfire?
  • 1,129 days Two ETFs That Could Hedge Against Extreme Market Volatility
  • 1,131 days Are NFTs About To Take Over Gaming?
Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

Market Sentiment At Its Lowest In 10 Months

Market Sentiment At Its Lowest In 10 Months

Stocks sold off last week…

  1. Home
  2. Markets
  3. Other

Eating Humble Pie

It's hard to make predictions, especially about the future. At least so the saying goes. When you're wrong, in my opinion, best to admit it and move on. This is what all traders must do if they plan to survive long enough to become the 5% (or less) that can actually do it profitably over the long term.

I thought the big neckline in Gold stocks would hold. My subscribers and I bought the neckline assuming it would. Instead, the neckline failed and we got out immediately with a loss. This is an ominous development for the precious metal (PM) stocks in particular and a warning for the whole PM sector in my opinion. This neckline is no secret and should be respected for what it is trying to tell us. Here's a 5 year chart of the GDX thru this week's close to show you what I mean:

Market vectors Gold Miners

It was a reasonable trade to go long at the neckline in my opinion given lousy PM sector sentiment, oversold momentum readings, low "Gold stocks to Gold" ratio and low "Gold stocks to common stocks" ratio readings. However, once that neckline broke, it was shown to be the wrong trade and out we go, waiting for a better opportunity. That opportunity may come from much lower levels.

Gold stocks are "seeing" trouble up ahead. I suspect Gold stocks are leading global equities into the next cyclical common equity bear market.

BUT IT CAN'T HAPPEN, BECAUSE IT'S AN ELECTION YEAR AND "THEY" WON'T LET MARKETS FALL UNTIL AFTER THE ELECTION.

How'd that work out for you in 2008?

 


If you are looking for advice in navigating and trading through what I believe to be impending market turmoil, consider trying my low cost subscription service - a one month trial is only $15. If not, my longer term advice is free: buy physical Gold, store it outside the banking system, and don't sell it until the Dow to Gold ratio dips below 2 (and we may well go below 1 this cycle).

 

Back to homepage

Leave a comment

Leave a comment