Are the metals going to outperform US markets this year?
Today with Doc we look at a recent island reversal for the US equity markets. This is typically a major reversal signal which would point to a top in the markets. However looking at the monthly charts and the relative tight trading ranges do not have us going all in to the major top idea. We also discuss how this plays into the argument of whether the US markets will outperform the precious metals or vise versa.
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BB; I have been purchasing PPP for over 1 month—in face, purchased some more yesterday. Cost averaging. They’re negotiating with the Mexican government about the tax issue and I have a feeling they’ll come to an agreement in the future. When that happens, I believe we should see a move higher.
Thanks, Doc. Nice to know that you and Matthew are buying, even if Rick says it could fall to .66 or .35 in the worst case. After falling from 8.50 to .70 PPP must be near a bottom.
Re: NGD
Bonzo, the pitchfork that I posted on Monday provided strong enough support to cause a 20% rally off the low:
http://stockcharts.com/h-sc/ui?s=NGD&p=W&yr=3&mn=3&dy=0&id=p41839951595&a=503103050
Thanks, Matthew. I already have a lot of NGD, so I’ll wait and see if it drops to $2
I was paying 0.85p for a pack of butter in the UK 2 weeks before Christmas. Today I paid £1.50.
Even a simple basic cup of tea was £1.00 2 weeks ago – now £1.10, so a 10% increase in a matter of days.
My point being that the official inflation rate is tiny but the price of foodstuffs is shooting up with some things going up many tens of percent at a time. I hear people saying similar things from across Europe.
My dental cleaning just jumped from $144 last July to $166, but my Soc.Security has not gone up in years.
I pay around 220 in Canada but deep cleaning at a major hospital just cost me over 1000 plus specialist fees of around over 500.
Move to California, where you can pay two or three times more!
When I have saved enough for my boob job I will.
I hear that it is law in California now to have siliicon boobs or a silicon bottom no matter what gender you are?
I hope it is silicone, as silicon implants would not be nice.
The drain from CA starts up again….
https://www.barchart.com/#/news/272886/nestle-usa-moving-headquarters-from-california-to-virginia
Just my guess of course, but it wouldnt surprise me to see goldshares tank with the general market.
People will sell what they can to raise cash.
After that, goldshares may look pretty good.
Bitcoin should go thru the roof at the time.
As the market sells off.
B:
Remember what Matthew and I were telling you in December about gold being at a tradable low? You are trying to come to the market with emotion and that will always cost you. Don’t overthink trading. Watch the emotions of others. The fact that you were so nervous in December told me it was a bottom.
I was nervous in Dec? Maybe, but I cashed a 2500% profit on what I bought.
bought @ 1/2 cent sold at 11 1/2 – 12 cents.
2500%? somewhere around there.
I am always nervous when I put cash to work, I dont kid myself, I know nothing, Im always guessing.
I was actually sure of myself when I was 15yo. lol
Anyway, are you suggesting that goldshares wont get hit when the general market does?
Oh, and thats good advice too.
My NUGT, USLV, and ASM are looking pretty sweet!
Doc’s points on risk equal my own. His question: ‘but where are people going to put their money, even if it is risky’, in my opinion doesn’t mean one should stay in the markets. A real old-timer once told me something that may be apropos in today’s environment. The only sure way to double your money is to fold it over and stick it back in your pocket! Cash doesn’t pay anything, especially with a broker but it will still be there while your stocks likely would be sinking at double digit percentages. JMO
You got a point silverdollar.
Preservation of wealth has its merits.
Personally, I dont gamble (oops, speculate) with any I cant afford to roll dice with.
Overall, I do figure Doc is right, 2018 should see PMs moving higher, 2017 might be a great time to position oneself.
Maybe great for trading to, if your any good at it.
I’m looking to have a bigger truck to “back up” in August or September of this year. From now to then will hop around up and down, but mostly down.
chartster, I agree but I don’t think it’ll fall as much as we discussed.
I think you’re right, Doc. The thing is, we have a new financial cycle starting soon, and it is going to be hard to chart the new cycle. ( as far as charts go )
Some would call it a black swan.
Metals that is.
Volatility. The global scene. Hhmmmm…
So, Iran have been put ‘on notice’ (?!)
And, the VIX drops a full point to 11.71.
This “I see no ships” mentality is really frustrating investors.
For those who can view a monthly chart, the gold miners (GDM) priced in gold closed January above an important long term resistance level:
Doc, in light of this recent move in silver, what chances do you give of the low $16 range still being met in the near future?
I think buyers would be lucky to get a pullback to $17. The dashed blue line on the following SLV chart roughly equates to $17.15 silver:
http://stockcharts.com/h-sc/ui?s=SLV&p=D&yr=1&mn=0&dy=8&id=p72289833098&a=451786106
The weekly SLV/Silver chart keeps improving…
http://stockcharts.com/h-sc/ui?s=SLV&p=W&yr=3&mn=7&dy=13&id=p04478240168&a=503291952
Gold is looking good. (The following chart won’t show today’s action until this evening.)
http://stockcharts.com/h-sc/ui?s=%24GOLD&p=D&yr=1&mn=3&dy=0&id=p70875888659&a=484925243
Silver has a nice head and shoulders bottom in play and is now trying to take back the 600 day ema…
http://stockcharts.com/h-sc/ui?s=%24SILVER&p=D&yr=1&mn=3&dy=0&id=p40449662926&a=503756682
GLD/Gold is at Fibonacci resistance this morning…
http://stockcharts.com/h-sc/ui?s=GLD&p=W&yr=3&mn=11&dy=22&id=p29876879125&a=502281716
The Dow (DIA) is down 22% versus GDX in just the last six weeks…
http://stockcharts.com/h-sc/ui?s=DIA%3AGDX&p=W&yr=5&mn=5&dy=0&id=p69001138041&a=493540636
Doc, you used to own PPP. Do you think it has bottomed? Matthew has bought it recently, and I bought some this morning after finding in the Jan presentation that Bob Quartermain is on the board. Matthew and Quartemain are very smart. NGD is up today.