Gold stocks: JNUG looks a clear buy here. Risk maybe 50%, potential reward 300%.

Right at the lows and oversold.

Could this be a contrarian buy post given the COT situation?

Ok fair enough steve :-) although I did hear it maybe got sidetracked a bit

Hi Matt/Steve, didn't the VIX issue a so called Buy Signal according to the usual rules?

Trim and trail as always.

Dollar up move seems to be gathering pace here, as matt would say "trim and trail". Always be alert to a reversal but personally I can't see this thing abating, with currencies around the world collapsing due to the financial irresponsible practices.

Didnt this happen before in the 70s?

https://gizmodo.com/turkeys-president-calls-for-boycott-of-american-electro-1828324203?utm_source=gizmodo_twitter&utm_campaign=socialflow_gizmodo_twitter&utm_medium=socialflow

Gold stocks: the shares are in a strong downtrend at the moment, and this shows no sign of reversal. Throw in the oil price may be about to shoot up it could get even worse.

That said, for the long term INVESTORS amongst you with a 3-5 year view I would suggest looking at these as they are trading very cheap relative to long term valuations. However, focus on cash rich companies because if this turns into a proper liquidation then some companies with high overhead may cease to operate.

Heads up and good luck!

Kill your ego, before your ego kills you. Take a look at this stock, and I doubt it will be around in a year or two.Who knows? I sure don't but Im glad I didn't hold it.

• http://stockcharts.com/h-sc/ui?s=EGO&p=M&yr=20&mn=6&dy=0&id=p17719791134&a=412543738&listNum=14

Chart from spaceman some time ago.

GDX down 10% but CDE down 5% and JNUG down 10%. Devastating sector, totally pummelled, and out of control with Chinese devaluations taking place can go a LOT lower with this policy embedded.

Thank you for this Matt.

Thanks for the newsletter. Sorry to hear about your mom.

Did you think about having her move in with you, instead of assisted living, which is expensive and also detached? I was in a similar situation and wish she had moved in, that was my personal experience.

Financial contagion in Europe to spread:

https://mobile.twitter.com/elerianm/status/1028622073629999110

True. Good.

After the trade was initiated it went into a loss then recovered.

With Bitcoin on the scene and the "new guy" maybe Greenspans "old relic" comment does stand finally. Its a clumpy material, costs money to store it, earns no income.

The lure and perception of gold is clearly in decline and has been since the 1970s, and if investors were to lose faith then it would go all the way back down to levels seen in 2000 when the UK Govt sold their gold.

Great trade matt.

This was a single entry trade. The position was opened on the close and started well, but then the market took a hit, I believe by a news event. The position was down and in a loss and it was by a reasonable amount. Manage your risk and keep wide stops on these trades, as entry is highly imperfect. The market stabilised some days after and then rallied recently, during earnings season.

SPX is now at a target level and geopolitical risk is still out there and earnings is drawing to an end.

The trade was closed for a slight profit I believe.

Gold is supposed to be a safe haven, and many use it as so. God bugs are the eternal hope traders. 

And yet these gold bugs play the sector by buying gold shares and will invariably lose their entire life savings and hard work. These things are toxic.

Sorry, my bad.

Is it closed out?

And open interest is bearish too.

Thanks for the update matt. Nice chart.