Chris Kimble – Gold Miners Bear Market Accelerates If This Happens!
Here is a quick summary of our good friend Chris Kimble’s outlook for GDX. Her points out a key level that is being broken today. Tomorrow will be very important for the month and quarter end close for gold stocks.
Click here to visit Chris’s site and follow along with what charts he is watching.
Gold mining stocks have struggled since last August, as they have lost nearly 25% in price, putting them into the bear market territory.
Is this enough of a decline? Gold miners have their fingers crossed this critical support holds right now!
The chart looks at Junior Gold miners ETF (GDXJ) over the past 9-years on a weekly basis. Since August of 2020, GDXJ has created a series of lower highs and lower lows, while declining nearly 25%.
Line (1) comes into play at the $45 level. It has been resistance and support several times over the past 8-years.
The 35-week decline now has GDXJ testing line (1) as support at (2). The pattern since the August highs has the potential to be a bull flag. If this pattern is correct, support must hold here and now!
If this support fails to hold, holding onto GDXJ could be very painful in the weeks to come, as the next support level is a large percent below current levels.
Click here to visit Chris’s site and follow along with what charts he is watching.
The USD is near resistance:
https://stockcharts.com/h-sc/ui?s=%24USD&p=W&yr=6&mn=3&dy=0&id=p96851081488&a=788644509
Silver:Gold fell to MA and fork support:
https://stockcharts.com/h-sc/ui?s=%24SILVER%3A%24GOLD&p=W&yr=2&mn=7&dy=0&id=p50576993065&a=899985381
We may get a bounce in the miners however it’s not going to hold. Liquidity trap is setting up. Miners have a lot of exposure to derivatives and toxic forward selling with hedging. Mining companies are very good trading vehicles at times. Every dog has its day. Just good for short-term pops. Several months at best sometimes. The liquidity trap that is setting up possibly, it’s really going to take its toll on mining companies. Everyone’s going to be running for the exits with the everything bubble. I don’t want to be anywhere near this stuff. It’s all toxic right now in my opinion. Patience is a virtue. Can you imagine the deals that are coming. The early bird sometimes gets the chop. Whack A Trades – greedy investors buying right before the smackdown or purchasing all the way down getting destroyed. Can’t wait to make money only to lose money.
I read the whole discussion Matthew and you had. One doesn’t need perfect timing to make money in PM’s especially PM stocks. They go up tenfold and even if you only get in for 1/2 the ride you still make good money…… or even buy and hold a good one like Kirkland lake.
As for Matthew cherry picking timeframes for his argument one could say the same for you.Interest rates over the last 40 years have trended downwards for the most part to the point that negative rates exist. What more could real estate and the stock market ask for. If one bought the peak of the dow prior to the Great Depression it took roughly 25 years to get back to even…roughly 25% of my friends who bought their first home in the late 80’s walked away from their homes when prices crashed. My ex father in law had to drain his retirement fund to put more equity down on his house when rates skyrocketed cuz he longer qualified for the mortgage and would have had to sell…..and tell all the johnnycome lately who invested in real estate just before 2008 that real estate is the be all and all……come to think of it you can tell all the people buying right now in Toronto the same thing when the inevitable correction comes.
All investing is about timing. Not perfect timing. You are right about those who nail the bottom and sell at the top. It’s about getting a good percentage of any run. I’m up only threefold now over the last year and half now as I didn’t sell all my winners at the peak and foolishly sold too early on a few rockets.
As for going forward, I don’t disagree that there should be some bloodshed but I think PM’s will hold up better than some like you think.
Well said Wolfster…… JMO
Wolfster, precious metal space especially in gold mining shares is a traders market and it’s been very brutal to anyone that’s tried to invest long term. This is not to say that we couldn’t have some great big explosion because that’s very possible but not many people will be able to enjoy it because they’re going to get whipsawed in and out been around this market for 40 years. This was just the introduction and I’m going to end that part because I could keep going.
Here’s the proof and it’s irrefutable. Everyone I’ve ever met that’s made a lot of money and is wealthy today it was never from precious metals investing. Everyone I know and I’ve ever met it’s from real estate and the stock market. There’s some exceptions because we have some very wealthy coin dealers that are in business. Those are the only individuals I’ve met but that’s from business transactions and they’re really not invested in their own products that they pitch it’s always been stocks and real estate.
There’s your proof and if you’re going to say that you have meet people you know that have made a lot of money and become very wealthy in precious metals………….
As you said, the stock market aka precious metals stocks…..yes I know many who have made good money that way and the price of PM’s dictates that. As for real estate wealth,most of the people I know only have their home as their big real estate asset and it cost a lot of money over many years to own it.
Also I’ve made money in many sectors and most of it is trading, not buy and waiting 40 years. Uranium is being good to me right now. You need to be more fluid HG. There’s lots of places to make money
Wolfster, I said the stock market the general stock market s&p 500 over the long term not precious metal stocks. Precious metal stocks most of them have actually collapsed over the last 30 years and many Junior mining companies have gone out of business. It’s a trader’s market.
There’s a lot of ways to make money especially being a business proprietor and many occupations.
I was discussing individuals and investors who became very wealthy it wasn’t through precious metals investing. Never met one yet. There’s a reason why. It’s not lucrative at all.
Lol….yes you’ve never met one so they don’t exist. Have you met any cryptocurrency investors who made it big??? They exist too. Maybe in the retirement enclave you venture in there are only real estate tycoons along with a few Buffets( how’s his strategy working these days where traders are making the real coin)…..venture out into the real world. Guys like Matthew Ex and myself are doing quite nicely at making coin in the PM stocks
Wolfster, like I said it’s a trader’s market. I’m referring to long-term investing. Precious metal sector is not for the average type person or someone that’s busy in an occupation it’s very volatile high risk investing you have to know when to buy and get out. Someone needs to be very actively trading it. It is very few though they can even trade it and make money. If you’re a skilled trader and you want to spend the time it’s not for the average person at all and far from it.
That’s priceless. You’re coming to a site where individuals are active traders sharing ideas and investments. What do expect????….yes we know all about buy and hold strategies. Mutual fund business is the great benefactor of this. Save your sage advice for sites where it’s needed…..sorry you’re not an adept trader. I got it. Your advice is buy and hold. You don’t have to add anymore. There’s nothing to add for the next 40 years following your sage advice
Wolfster, I appreciate that and I’m very aware of we have traders here. However, we had a discussion on the other forum regarding precious metal investing and long-term awareness.
Also, it’s not all trading here, we do have long-term investors that are present. It’s two-fold and interests do vary. Like I said though, I respect the forum for traders as well. So please, let’s just keep this in perspective because precious metals are not suitable for the average person trading them, far from it and this is just a carryover from the other forum.
Happy trading and there was any misunderstanding I apologize however the discussion was regarding long-term investing.
Matthew just did a full gold market analysis presentation…thank you…..Of note…I looked at every intraday /GC time frame…They ALL show bottoming patterns…Will technical analysis matter this time…As usual…maybe; says probability..lmao🔊😜🤡💩🕶
Thanks…… 🙂
Thanks for the CHARTS …Matthew…… appreciate as always.
Gold Update!
I think as much as some of you hate holy Im one who believes he raises valid points. I don’t care for the bickering but i do care for realsitc approaches to overall market and trend.
With that being said im not married to anyone trade as discussed several times i only care about my portfolio and try to purchase as cheap as possible before the turn which by fact has not yet happen no matter how many investors want to believe so.
on record i closed out my short position in gold at the open. To much volatilty as discussed a week or so ago and its not my appetite. Neverthess i made enough coin for an average 6 months salary. My first time doing and glad i did.
I remain on sidelines with long term intact and not sold just will add when this temporary bounce today goes back down towards $1618-$1627
Short term portfolio remains trapped above as discussed and i can wait that out. What key is to make the blood phase purchase yet to come..
I believe short term hui has a date with 228-230..Before a solid bounce but this can happen by friday or early next week.
After that i see a blood bath phase beginning and with this is a probability of the final low in gold in april instead of may lets take it day at a time.
cheers
glen
Glen, appreciate all your efforts posting your analysis it’s been excellent. What’s even more important you’re very thoughtful with everyone and extremely polite.
Sorry I’ve been busy defending the truth with countless messages back and forth so just thought I’d let you know have a great day.
Every gold miner green…that tends to be positive breadth……nice call Matthew!…lmao😜🤡💩🎭🚽📡
I can finally afford those green blocker glasses at Amazon…🕶
MTA top performer…one day rate of change…8%…LMAO📞💩🕶📮🔊
Reckoning time has arrived.
https://wolfstreet.com/2021/03/29/ponzis-go-boom/