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GDX Historic Outflows… Here are the details

Cory
May 26, 2017

Continuing our coverage on the gold sector today I have another great post from our friend Chris Kimble over at Kimble Charting Solutions. The chart presented on the money flows into and out of GDX perfectly shows why GDX has under performed gold.

I highly recommend checking out Chris’s site by clicking here.

When it comes to investors being bullish Gold miners ETF GDX, they are hard to find, as outflows are hitting levels never seen. Below looks at inflows/outflows from GDX over the past 11-years. As you can see, investors are bailing out of GDX like never before!

CLICK ON CHART TO ENLARGE

Inflows and Outflows are one thing, price is another. Below looks at the price patterns of GDX over the past 8-years-

CLICK ON CHART TO ENLARGE

Pennant patterns tend to frustrate both bulls and bears, as no trend is in play. These patterns often cause investors to back away due to the choppy nature of the pattern. Pennant patterns aren’t good about tipping one off to the future direction of an asset. They are good from this perspective; when a breakout from the pattern takes place, follow it, because big moves often follow.

Joe Friday Just The Facts; GDX is going to breakout of this pattern and the odds are good a big move will follow. This will lead to an outstanding trade opportunity. Are you ready for it???

If you would like to stay on top of this pattern and how we are going to play it, we would be honored if you were a Premium or Metals member.

GDX
Discussion
50 Comments
    CFS
    May 26, 2017 26:10 AM

    But look at today’s action!

    May 26, 2017 26:56 AM

    Thanks Cory. That pennant formation is something else. Bears watching. Couple more weeks and we’ll know.

    May 26, 2017 26:17 AM

    Looks like a collapse in GDX is coming. It would make sense if the stock market is in its final blow-off phase. However sense has nothing to do with this. Sense only seems to come after the fact and when the dust has settled, the winners scream victory and the losers retreat quietly into oblivion. This stock market seems invincible

    CFS
    May 26, 2017 26:20 AM

    I find it interesting that the London and Shanghai gold prices have now narrowed to almost zero difference.

    :Pt and Pd both up almost $20 today.

      May 27, 2017 27:34 AM

      It was a constructive Friday.

    May 26, 2017 26:30 AM
    j
    May 26, 2017 26:38 AM

    Chris is using a linear chart to make his point….his charts are rarely very defined to show his opinion. A log chart shows a different picture of support while both log and linear show overhead resistance

    http://bit.ly/2r4uN1O

    http://bit.ly/2qjYSNz

    May 26, 2017 26:54 AM

    I was here a few months ago bashing gold. 2 years ago I said I owned some companies in the DOW and NASDAQ. 5 years ago I argued with BM (Not Bird Man) that the DOW was about to take off. I heard years ago it was the end of cheap oil, USD was used toilet paper and the shelves would be emptied in a crisis that never came. BM you snort to much gold dust. The Dows up 90% and Gold down 25% since 2012….Not all but most gold bugs are absolute fear mongering idiots. As I said be careful out there!

      May 26, 2017 26:16 AM

      Bill, you have a knack for marking the low when you show up here and that’s probably the case now. You said gold bugs were f–king idiots as the miners bottomed in January, 2016 – when you should have been buying all you could. I had three 1,000% gainers from that low.

      Since 2000, gold is up about 5 fold while the Dow hasn’t quite doubled.

      May 26, 2017 26:23 PM

      Bill:

      Don’t let the naysayers get you down just because you got it dead wrong again. You did say to buy right at the top of the real estate market.

        May 27, 2017 27:54 AM

        Nope never bought at the top Bob
        Found a beauty commercial prop all leased up for 2.175m worth 2.9mil with 200k cash flow. Big discount to the cost of building… Will never sell that piece. The kids will get it.
        My reits are up 40% payi y 7-9% yr in a zirp world. Neutral on them now. I invest I dont guess on shooting stars. Howz you Iguana? Down 50% right?! You have been completely lost and i warned peole not to listen to your bs. Block chain is the future not packing around a bar of gold to be confiscated and taxed…You old buggars cant think out of the box…im 50 and retired. Dont bother reply because im gone..

    CFS
    May 26, 2017 26:05 AM

    Bill, Pity you missed the 200% increase in Bitcoin.

      May 27, 2017 27:29 PM

      I’m not a gambling / speculator. Most gold bugs jump up and down shouting the wolds going to end. No all but most. They are obsessive as hell. Burn a ton of energy destroying the landscape….then put it into a box and have security stand around protecting it while it pays nothing for ever. There were decades where gold did jack all while my business’s grew 10% yr while paying a large living. Yup Gold bugs are idiots.
      CFS where can you put a couple million in and leverage 50-75% and sleep at night? WHILE you are getting paid a shit ton of cash, your mortgage gets paid and inflated away. The Investment enjoys the inflation at total value! Yip golds a joke compared to THAT.
      Ill just live longer too. Id rather dig some holes with my excavator then obsess over the gold market. WAY more fun.
      I’ve watched some of the best and brightest managers get killed the last 15yrs. Invest in things that are there when I wake up in the morning. Down 50% http://www.eguanatech.com/ Just gambling.

        May 27, 2017 27:31 PM

        And it was going to be the end of cheap energy BOB!? lol Do you have any clue what technologies are doing?

          May 27, 2017 27:38 PM

          When autonomous cars are approved within 10 yrs 95% of passenger miles will be done with ride sharing electrics. Traffic and pollution issues down the tubes. A saving of $6000yr for the avg family. Zillions in savings from accidents and health care costs. Parts stores BYE BYE along with body shops ect ect.

    May 26, 2017 26:13 AM

    I may have missed something . . . but I haven’t heard Doc P nor a Daily Wrap in sometime. Did something change ?

    May 26, 2017 26:49 PM

    Toronto real estate not looking to good…….zh

      May 26, 2017 26:50 PM

      Need some more Chinese buyers………..

    May 26, 2017 26:54 PM

    Seems real estate is getting to expense in Washington DC, $313,000 cheapest house, on the other side of the tracks, where even the minorities are getting priced out of their neighborhoods……..next price up is $420,000 in a so-so neigborhood. The white shoe boys are killing America.

      CFS
      May 26, 2017 26:11 PM

      Come to California, if you want sticker shock on house prices.

      And it is like a third world country in Sonoma right no electricity, down for about an hour so far today, and judging by languages heard walking around the street, I could be in Latin America.

        May 26, 2017 26:44 PM

        California , has has sticker shock for a very long time……I remember $200,000 seem to be sticker shock in the 70’s….for a 1200 sq ft track home. When the same house in the midwest would be valued at $20,000, and that would be on the high side.

      May 26, 2017 26:10 PM

      Although the White House appraisal dropped dramatically in 08, it seems to have made a very nice rebound… Experts say.

    CFS
    May 26, 2017 26:07 PM

    UK arrests ninth Islamist connected with Manchester bombing, but police admit there are still having problems as the plot gets bigger from every rock they lift up and look under.

      May 26, 2017 26:08 PM

      Hope they clean house……….

        CFS
        May 26, 2017 26:17 PM

        They have let in 400 known ISIS fighters that had fought in Syria and have between 4,000 and 10,000 suspected Islamists……3,5000 on a terrorist suspect list.
        They cannot keep tabs on half of them. And they still let in more “refugees ”
        How stupid can the government get?

          May 27, 2017 27:42 AM

          Believe me, there is no limit to their stupidity.

    May 26, 2017 26:20 PM

    GREG HUNTER>>>>>out with his BEST EVER…..comments………

      May 26, 2017 26:21 PM

      Matthew 28:18………

    CFS
    May 26, 2017 26:23 PM

    Bob Hoye on banks buying stocks,etc …..Is everyone in the market?

    https://youtu.be/CTwDTUQuliE?t=47

    CFS
    May 26, 2017 26:12 PM

    Shariah-gold-crypto…… ONEGRAM

    A new currency was announced on May 4 at the Ritz Carlton, Dubai International Financial Center—with the official ICO (Initial Coin Offering) following only 17 days later.
    I did tell this blog that there had been an increase in gold purchases by the Middle East.
    “In recent years, the Middle East has seen incredible growth in fintech innovations including digital tokens and smart contracts,” said Ibrahim Mohammed, the founder and CEO of OneGram, in his first press release. “With OneGram, we’re excited to provide an opportunity for investors who care about Islamic financial markets and the security of commodity-backed investments to benefit from rapid technological advances in the blockchain industry.”
    According to OneGram’s website, initially each OneGram coin (OGC) is backed by one gram of gold and can be used for digital payments, just like Bitcoin.

    The total number of OGCs is fixed and won’t change after the ICO. The digital transaction fees (minus admin costs) will be reinvested to buy more gold.

    “Therefore,” states the website, “the amount of gold backing each OGC will increase with time.”

    Plus, of course, a rising gold price and the growing acceptance of OneGram in the market are also poised to pump up its value.

    Gold and crypto-currency experts are already speculating about the implications of the launch. A recent CoinDesk review stated:

    Bitcoin is often referred to as a “good” money because of its limited supply, relative fungibility and ease of exchange. If gold can also start to satisfy those requirements, a seismic shift from fiat to digital could be easier to “sell”—the public is predisposed to trust gold, certainly more so than cryptography.

    It could also open the door to the creation of a new global currency as an alternative to the dollar, something that Russia and China are rumored to be looking at.

    More on ZeroHedge.

    CFS
    May 26, 2017 26:01 PM

    “Today, the top one-tenth of 1% owns nearly as much wealth as the bottom 90%. The economic game is rigged, and this level of inequality is unsustainable. We need an economy that works for all, not just the powerful.

    The problems we face, did not come down from the heavens. They are made, they are made by bad human decisions, and good human decisions can change them.”

    Bernie Sanders

    Alas, his solution is extreme socialism. How many times must it be proven not to work?

    The real solution is not more government, but more freedom.

    CFS
    May 26, 2017 26:04 PM

    Russian Bankers Sue BuzzFeed Over Unverified Trump Dossier
    By KAREN MATTHEWS – Associated Press – 34 minutes ago
    NEW YORK (AP) — The owners of a Russian bank filed a lawsuit against the online publication BuzzFeed on Friday for publishing an uncorroborated dossier that alleged they were part of a Russian scheme to influence the 2016 U.S. presidential election.

    Mikhail Fridman, Petr Aven and German Khan of Alfa Bank are seeking unspecified damages from BuzzFeed, editor-in-chief Ben Smith, reporter Ken Bensinger, and editors Miriam Elder and Mark Schoofs.

    The dossier published Jan. 10 included explosive claims that Russian officials had compiled compromising information about Republican Donald Trump. Trump called the report “fake news.”

    CFS
    May 26, 2017 26:06 PM
    CFS
    May 26, 2017 26:15 PM

    https://www.thesun.co.uk/news/3658061/isis-tells-followers-terror-attack-ramadan-start-manchester-bombing/

    How many times does the Koran preach love, or forgiveness?

    It’s the religion, Stupid.

    CFS
    May 26, 2017 26:22 PM

    Federal prosecutor working on passport/visa fraud:
    http://www.miamiherald.com/news/local/community/broward/article152629589.html

    May 26, 2017 26:25 PM

    Week end (GDXJ) Holdings update:

    $TGZ $KDX $KLDX $CNL $SMF $KL $BTG $BTO $EDR $EXK $RIC $FVI $FSM

    http://cdn.ceo.ca/1cihpp1-Screen%20Shot%202017-05-26%20at%207.34.59%20PM.png

    HAL
    May 27, 2017 27:03 AM

    the price action and selling of GDX I think is saying that investors in our sector are getting ready for issues in the market by getting out of etf and buying the specific stocks.

    Some of the bigger stocks including NEM have performed well the past several week sand some like ABX have not been dogs but have been weak.

    its time for doing homework and having good stock selection.

    both for the seniors and juniors.

      May 27, 2017 27:39 AM

      That’s an interesting perspective Hal. It very well could be investors rotating out of ETFs and into a basket of individual stocks. That would be a very constructive development. ETFs concentrate too much focus on a limited universe of stocks (regardless of their news, performance, management decisions, etc…), and it would be nice to see the trend being focused on people and institutions investing in growth potential, development, and exploration again and “picking” their stocks instead of buying a pre-determined basket.

    May 29, 2017 29:38 AM

    Most are clueless. Bob post some of the biggest fools PERIOD. There are 1000s and all wrong just like this one….
    http://www.321gold.com/editorials/rosen/rosen061216.pdf