Updates on GDX, Yields, and Jordan’s New Uranium Index
Jordan Roy-Byrne, Founder of The Daily Gold shares his updated technicals on GDX, US long-term yields, and the uranium market. With GDX moving up in the past couple days Jordan is thinking that the short term bottom is in but there are some upper resistance zones that could hold this bounce back. As for yields the uptrend is very much in place and they are close to breaking out. Uranium also continues to be a sector of interest and now Jordan has created a small uranium stock index to help track its movements.
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Matthew,
What about impact Silver? I have it breaking out to the upside of a wedge today on the daily on heavy volume. Also, can you give me your analysis of TRCH based on the recent breakdown and whether you think it has bottomed or has farther to fall? It fell all the way down to 90 cents which is more than I expected, but rebounded today on heavy volume.
Thanks much.
Impact is shaping up very well…
http://schrts.co/Myx2AA
Impact has been plumbing for an intermediate term low for the last month and probably found it two weeks ago.
http://schrts.co/ABnXMB
TRCH has probably bottomed but more evidence is needed…
http://schrts.co/Buomg1
Today’s action counts as more evidence! 🤠 Yeehaw!
Gold: Was that the low?
September 18, 2018 – Richard Lorusso – Tech Focus
“Today there are a number of factors we would like to focus on which collectively suggest the possibility of a low. Given that gold seasonally often forms a low in July or August, it seems timely to review some of these factors.”
“The 7-year period from the high is an important Gann cycle as well at the 144 week interval from a previous significant low.”
“In the first 3 cases, each index scored a low on Sept 11. Ironically, the gold did not. It scored its low on August 16. It is obviously divergent behavior and equally important it has been in place for a while. Divergences occur at important market turns between related items in a particular sector. This is another indication of a potential gold low.”
https://goldtadise.com/wp-content/uploads/2018/09/Gold-a-Closer-Look-09-18-18.pdf
A couple of savvy points from that Richard Lorusso article linked above:
1) “Given that gold seasonally often forms a low in July or August, it seems timely to review some of these factors.”
* BINGO. Gold does seasonally bottom in July or August so he’s spot on there.
2) measuring using a Fibonacci number like the “144 week interval from a previous significant low” is quite harmonic.
3) Gold did score it’s low in mid August and held it, while it took the Gold stocks about another month to bottom, which was quite a tell and a divergence as he stated. It shows that Gold is leading for now, which is how it usually goes at turns, and early upward moves, and as stated on here numerous times, then PM investors will see Silver and the miners play catch up and eventually outperform Gold on a factor of 2:1 and 3:1 respectively (if it is a sustained move higher).
I also thought some of the other sections and charts were interesting regarding the measuring of Fibonacci retracements from the major low to the present August low, and showing that they coincided with key previous peaks and troughs was also
significant, and highlights the potential importance of the low we just saw.
U.S. Dollar and Gold: Is This Time Different?
by Dr. Thorsten Polleit – Degussa Market Report
“On 13 August 2018, the price of gold fell below 1,200 USD/oz, declining to a 1.5 year low. What to make of this move? It seems that several factors have been at work in triggering the gold price decline. At the same time, it does not seem too far-fetched to think that the current market price of gold is now well below its true value, and so the chance for the gold price to go up outweighs the risk of a further drop by quite a margin. Here is why…”
taxation of bullion
With regards to the Uranium sector:
As we stated a number of times in 2016 and 2017 and ever since then, the $17-$18 double-bottom lows that Uranium plumbed was THE BOTTOM, and there have been a few really good rallies in the miners since the initial one in 2016, for those that were paying attention.
Over the last 2 years the fundamentals have only improved with less underfeeding, first round of production cuts from Kazakhstan, the initial Cameco slow down, then the initial Trump tweets, then the shuttering of some of Paladin’s assets, the divesting of some of Areva’s assets and divisions into different directions, the DOE finally saying enough is enough with dumping secondary supply into the spot markets, the producers like Ur-Energy and Energy Fuels starting to fulfill contracts through purchases in the spot market because it was cheaper than producing it, the next round of Kazakhstan productions cuts, the closing down of McArthur River mine by Cameco, the Section 232 petition for US domestic supply, and new reactors coming online in the Middle East and Asia.
As for Jordan’s comments today on the Uranium sector, I agree that the URA rebalancing was nuts and bell ringing for investors to pay attention when the Uranium Mining ETF rotated out of big chunks of their positions in Uranium miners, to reallocate to new additions of manufacturers, gold, and even lithium stocks. It made no sense, and is exactly the kind of abandoning ship by clueless investors that we see as markets turn.
I commented quite a bit on this over at ceo.ca when the topic first came up as a clue to get more serious about acquiring companies once the ETF selling was through.
long IGXT
SLV:GLD is getting ready to pop —and maybe significantly. That would be positive for the miners.
http://schrts.co/8oKSqL