Until gold stocks prove otherwise, they still trade in the
direction of the broader market (die-hard gold bugs find it hard to
believe this, however). Until the market breaks, I would
advise caution - because there is more downside possible. If
the S&P head south, so will the gold mine stocks. If they
do, then when the bottom is in place, there will be great
opportunities. The problem is that if you own and the market
crashes, you very well might bail out near the bottom after losing
big, and then be reluctant to enter when the rally begins.
cufuzzy - did you listen to the newsletter last night in regards
to GDX. I discussed the positive divergence on the 60 minute chart
and said to watch the lower time frames for a trade trigger. The
small falling wedge broke to the upside this morning providing a
nice trade.
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gold stocks
Posted by cufuzzy on 30th of Sep 2011 at 11:04 am
Still green despite gold, silver, and market down. Time to buy or just a blip?
Title: GDX Until gold stocks prove
Posted by billnew52 on 30th of Sep 2011 at 11:17 am
Until gold stocks prove otherwise, they still trade in the direction of the broader market (die-hard gold bugs find it hard to believe this, however). Until the market breaks, I would advise caution - because there is more downside possible. If the S&P head south, so will the gold mine stocks. If they do, then when the bottom is in place, there will be great opportunities. The problem is that if you own and the market crashes, you very well might bail out near the bottom after losing big, and then be reluctant to enter when the rally begins.
My advice - practice patience, it's a virtue!
cufuzzy - did you listen
Posted by steve on 30th of Sep 2011 at 11:10 am
cufuzzy - did you listen to the newsletter last night in regards to GDX. I discussed the positive divergence on the 60 minute chart and said to watch the lower time frames for a trade trigger. The small falling wedge broke to the upside this morning providing a nice trade.