A technical outlook on gold and gold stocks correction
Jordan Roy-Byrne joins me to comment on the short term pullback we are seeing for gold and gold stocks. Gold is rebounding today but the stocks are still down for the day and down around 12% over the past 5 trading days. We also get a quick comment on silver which has been outperforming.
Click here to visit Jordan’s site for more metals commentary.
“Dramatic and massive” could easily happen based on my reading of things. The reversals since the crash lows have already been dramatic and massive and not at all what most expected.
Agree totally. Even today’s turn-around in the HUI is dramatic in my book!
SilverDollar – Agreed about today’s turnaround mid-day in the miners. There was a lot of buying that showed up later in the afternoon session, reversing the trend in the many of the gold & silver mining stocks. It will need to see some follow through tomorrow and Friday, but it was at least quite encouraging that maybe a shorter term low was established.
Here’s another good listen for MUX holders if there are any left on this page besides myself. Rob McEwen: https://www.kitco.com/news/video/show/Kitco-Mining/2834/2020-05-25/Is-it-a-V–or-W-shaped-recovery-McEwen-says-its-an-S#_48_INSTANCE_puYLh9Vd66QY_=https%3A%2F%2Fwww.kitco.com%2Fnews%2Fvideo%2Flatest%3Fshow%3DKitco-Mining
I’m sticking with MUX. Rob will probably find a way.
Thanks SD for posting this as I own the stock, thankfully not too much of it. I like Rob & have heard him speak a few times. An honest guy & I hope he can deliver……..mining be “risky” & they have had the screw ups in the past year.
I sold McEwen last week and am just tired of MUX missing guidance and having problems at each of their operations. Argentina is not the hottest jurisdiction and they haven’t been knocking it out of the park at San Jose, they’ve struggled over over a year at Black Fox (that Primero had previously struggled with), and now they’ve had challenges with heap leach operations in Nevada with Gold Bar. Los Azules is monster copper deposit, but they are doing anything with it.
I may get back in McEwen at one point when they prove they can get their ship turned around, but the last few quarters have been quite disappointing, and there are other companies getting better traction and having greater success.
Jim Sinclair at one time said just buy physical and MUX. I did…several times. I sold MUX for the last time a couple of years ago.
Great comments on MUX. Thanks all. With the pessimism on the stock about 80-20, let’s have some fun. Couldn’t be a better time to call a bottom on MUX given the fundamental nature of the world at this juncture. Any buying in the stock less than $1.00 has little danger IMO. True, as Ex. stated, there are other companies getting better traction but I thought McEwen had some good answers for all the problems that beset the company in the past few years. One has to admit they had some doozies, like the consultant who got ‘vertical’ missed up with ‘horizontal’!
Well, MUX is perking up today, along with the rest of the sector — It’s up 9% on the day.
It may have bottomed earlier this week , and now it has risen to where I unloaded it last week.
I’m tempted to get back in for a redemption rally, as I want to like MUX, but I’ve been bit several times now, and have plenty of Gold & Silver positions that are doing great, without the continuous disappointments. However, deep down, as jaded as I am with MUX, I still believe Rob will pull a rabbit out of his hat and get this turned around.
I may jump back in one day, but have added a few new producera to the mix in the last few days to replace my MUX and KNT positions. We’ll see hot it goes….
Wishing everyone still in MUX all the best and hoping they pull off a radical turnaround.
producera = producers
hot = how
I liked “hot producera” better.
What a bad commentary from Jordan. It was like he did not know what to say.
He´s definately done better…
My personal thoughts on the recent pullback we’ve seen has much to do with the Options market which had gold expiring on Tuesday. It’s very typical for the banks and other participants to do whatever they can to hit gold and prevent the short-term traders from profiting too easily and in quantity.
Here’s a good listen from Jay Taylor with Michael Oliver who is a real favorite IMO.
https://marketsanity.com/michael-oliver-believes-the-next-move-higher-for-gold-and-silver-will-be-dramatic-and-massive/