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GDX correction compared to the 2002, 2006, and 2009 corrections

Cory
September 30, 2020

Jordan Roy-Byrne joins me today to share an analog chart comparing the current correction in GDX to the corrections from 2003, 2006, and 2009. We also discuss the types of gold stocks that Jordan thinks provide the best value and upside potential.

Click here to visit Jordan’s site – The Daily Gold.

https://lh4.googleusercontent.com/YiKBaGBGO1TyhNcef4l1Mexoa5m-xb7D7vH9OcGWNV44ewiAf3twRKETYV-J8awM7gQT3R5TdbJpB9VFwxMoL3MJIENdKoTAsY_7FbVz0Dbevoq-qbDbGqv8uz6GVVHB0guRanffZpLQQVVUmg
Discussion
9 Comments
    Sep 30, 2020 30:23 PM

    Sounds like Silvercrest is the supreme prototype

    Sep 30, 2020 30:23 PM

    Oops

    Sep 30, 2020 30:06 PM

    The XAU’s quarter MACD(50,60,9) just gave its first buy signal since the middle of 2003. Back then, the buy signal lagged the standard 12,26,9 MACD by 18 months. This time, the buy signal lagged by 48 months. Price is still 12% above the quarterly upper Bollinger Band.
    The bears were barely able to stop a quarterly close from happening above the quarterly Ichimoku Cloud but I doubt they will be successful in stopping it again in Q4.

    Food for thought:
    “While amateurs go broke by taking large losses, professionals go broke by taking small profits.”
    “The desire to maximize the number of winning trades (or minimize the number of losing trades) works against the trader. The success rate of trades is the least important performance statistic and may even be inversely related to performance.”
    —William Eckhardt

    The above is correct and very important to understand. One does not need a high success rate to make a killing if one knows how to recognize and then maximize opportunity. I know this first hand and is the reason I’ve talked about the tendency of so many to sell way too soon. At best, taking repeated small gains will give you what feels a lot like a job. Retirement or at least freedom comes from taking the occasional big wins that will never happen if one “prudently” always sells too soon and bets to small.

    It looks like Marin Katusa got his “Alligator Investing” idea from the Turtle Traders of his childhood…
    https://www.financetrendsletter.com/2016/08/maximize-your-gains-not-wins-william.html

      Oct 01, 2020 01:56 AM

      GDX, the most popular gold mining ETF by far, did manage to finish the quarter bullishly above the quarterly Ichimoku Cloud.

    Oct 01, 2020 01:38 AM

    Brixton Metals Samples 6,160 g/t Silver and 16.9% Cobalt from Surface at its Langis Project and Mobilizes Drill to Site
    http://brixtonmetals.com/brixton-metals-samples-6160-g-t-silver-and-16-9-cobalt-from-surface-at-its-langis-project-and-mobilizes-drill-to-site/

      Oct 01, 2020 01:05 AM

      Matthew
      Thanks for the wise words above. Also…some really good samples by Brixton. It got a good pop over +15% at open.

        Oct 01, 2020 01:54 AM

        Brixton has so much speculative/exploration potential that it is very likely to keep delivering big leverage to the metals for the duration of the bull market even if all the company does is continue to drill. It’s natural bull market action that always leaves some scratching their heads but I like it because companies like Brixton have fewer risks than developers and producers and the risks they do have are generally lower than is widely perceived. The downside (which isn’t necessarily really a downside) is that human hopium disappears during even a small correction so such companies tend to have pullbacks that are just as impressive as their rises when things are just right.
        I still have most of my 1M+ shares and sold none on today’s pop even though this old correction still might not be over.

          Oct 01, 2020 01:12 AM

          Great thoughts on……..like Brixton have fewer risks than developers and producers and the risks they do have are generally lower than is widely perceived.

            Oct 01, 2020 01:14 AM

            Brixton Metals Samples 6,160 g/t Silver……that is a nice sample JMO