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Momentum vs Sentiment For Gold

Cory
March 6, 2019

Chris Vermeulen, Founder of The Technical Traders shares his thoughts on the recent pullback in gold. There is a debate over sentiment (which remains strong) vs momentum (which is negative) and which one will carry the market in the short term. We also look at the USD and the tech sector in terms of just how much more they can run.

Click here to visit The Technical Traders website.

Discussion
44 Comments
    Mar 06, 2019 06:12 AM

    The Alamo fell on March 6, 1836. No prisoners were taken. Remember the Alamo!

      Mar 06, 2019 06:39 AM

      Maybe we could ship AOC…..to the Alamo……..or the OK Corral ….

      Mar 06, 2019 06:05 AM

      They should have built a higher and thicker wall around the Alamo.

        b
        Mar 06, 2019 06:37 AM

        The mexicans should have surrounded it and left with the remainder of the army.

        Hindsight is 20/20.

      Mar 06, 2019 06:35 AM

      Should have run away and had Santa Anna follow them to San Jacinto. Then all the cities and Counties in Texas would have been named Houston.

        b
        Mar 06, 2019 06:21 AM

        lol

        2 sides to everything I suppose.

    Mar 06, 2019 06:17 AM

    Kootenay Announces Increase in Non-brokered Private Placement and Closing for Proceeds of $7.0 Million
    http://pdf.reuters.com/htmlnews/htmlnews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20190306:nCNWy3P4Ta

      Mar 06, 2019 06:43 AM

      Mako Mining Announces Non-Brokered Private Placement Financing With Existing Shareholders

      https://makominingcorp.com/news/index.php?content_id=105

        Mar 06, 2019 06:49 AM

        (MKO) (GRGNF) Mako Mining Begins Producing Gold Again at La Trinidad

        “Mako Mining is pleased to report that dewatering of the Taunus pit is nearing completion and mining has recommenced. Crushing and stacking on the leach pad has also resumed and the crusher stockpile is being replenished. This month, to date, the Company has mined over 71,000 tonnes of ore at an average grade of 1.22 g/t gold and has crushed over 53,000 dry tonnes of ore at an average grade of 1.33g/t gold. The current ore stockpile has been built up to over 37,000 tonnes at 1.23 g/t gold to date. Although the Company has made good headway with the removal of mud and other debris in the pit, it continues to evaluate the safest and most effective mine plan to recover the remaining gold ounces.”

        “While Mako Mining has experience dealing with hurricane related insurance claims, it is not currently in a position to estimate the amount of the insurance claim or the eventual reimbursement that it will receive, nor is the Company in a position to comment on future cash flows from the La Trinidad Mine until crushing and processing rates return to design capacity.”

        https://makominingcorp.com/news/index.php?content_id=104

    Mar 06, 2019 06:19 AM

    Palladium………..$1500……anyone notice…..was $164 in 2008……
    WHAT IS THE LOWEST SPOT PRICE PALLADIUM PER OUNCE IN THE PAST 10 YEARS?
    In the last 10 years of the Palladium price history, the Palladium price was lowest on Dec. 5, 2008 at 12:30 p.m. (CT), when the troy ounce Palladium spot price was $164.00 USD. You can check out the price trends of Platinum, Silver and Gold, too.

    Mar 06, 2019 06:20 AM

    Palladium……on a tear……..up $200 in 30 days…..

    Mar 06, 2019 06:31 AM

    Many weeks ago, Goldman Sachs (Jeff Currie) announced a 1425 target for gold and I said that my target was 1450-1480. Well GS has now seen the light and raised its target to 1450.๐Ÿ˜Ž
    https://gracelandjuniors.com/wordpress/wp-content/uploads/2019/03/2019mar5goldman1.png

      Mar 06, 2019 06:39 AM

      Great call Matt!

        Mar 06, 2019 06:48 PM

        It will be real funny if it tops at 1425!

    Mar 06, 2019 06:33 AM

    GS……must have read your report…….. ๐Ÿ™‚

      Mar 06, 2019 06:40 AM

      Lol, sure! ๐Ÿ˜‚

    Mar 06, 2019 06:44 AM

    My new UEX position looks good today:
    http://schrts.co/WtMjtJxY

      Mar 06, 2019 06:22 PM

      I did too and now it is my largest holding. I like the way the stock price swings between the bollinger bands.

        Mar 07, 2019 07:32 AM

        My (URG) position has looked good since Uranium bottomed back in late 2016.

        It’s had some great volatility for trading as well, and will benefit from the US Section 232

        http://schrts.co/IHIBqtac

          Mar 07, 2019 07:49 AM

          Bottom left to top right is the right direction. I hope UEX has put in a hard bottom.

    Mar 06, 2019 06:48 AM

    My Brixton has pulled back hard but I’m not concerned and will probably buy more:
    http://schrts.co/MMIDPppA

      Mar 06, 2019 06:26 AM

      I am holding also as appears the down move is probably a general algo smash that never has to do with fundamentals or technicals having anything to do with mining. They just want us to dump miners and buy some Tesla. The excuses given by CNBS get old and tired. Bottomline: No Brixton news to warrant the action…nor AG, KL, GTBDF, MUX or on and on. There are no free markets…just criminal ones.

        Mar 07, 2019 07:38 AM

        I had a nice run with (BBB) Brixton in 2016 and a good trade during the Q1 run in 2017, but really wish I would have sold the rest of my core position then before the second half of 2017 and all of 2018 when they continued playing musical chairs with what their flagship was going to be, and made a series of bad decisions back to back.

        I got interested in Brixton back in 2016 due to their Thorn gold project in the Golden Triangle BC, and really for their Silver/Cobalt Langis property in Ontario. The Silver leverage and Gold discovery story is what really caused them to have some oomph back then.

        However, then it started to appear that there wasn’t enough gold to make an economic deposit at Thorn and they got even more Silver focused which the market reacted to positively.

        In 2017 they started getting weird focusing more on Atlin and then out of nowhere bought the Hog Heaven property from Pan American in Montana of all places (which has been very tough on letting any new mines be developed). They acted like this would be the new crown jewel of the company and then didn’t do much with it, which seemed like a gross waste of funds and sent a confusing signal to the marketplace.

        Then when their Langis-Hudson drilling finally got some attention back for their Silver & Cobalt hits, they decided to sell off some of their “non-core” Cobalt properties when that was one of the few asset classes getting any traction with resource investors back in 2017 and the stock slumped afterwards. They should have just not bought hog heaven, focused solely on the Silver/Cobalt story, and ignored Atlin & Thorn.

        Then they were going to spin out their Silver/Cobalt assets into a separate company, but didn’t (??).

        Now they are buying up more land around Atlin trying to make a Gold discovery, but they really have Attention Deficit Disorder and this lack of focus has many people wondering why they keep changing their flagship.

        Maybe they should just become a prospect generator and farm out all their projects to other companies to earn into and focus on just 1 primary project.

        It is no wonder that Brixton’s stock has slumped though, and “no news” is the whole problem. While it is true the whole sector has slumped, there have been several dozen exploration stocks that have popped on good drill results in 2017, 2018, and 2019, and their lack of focus scared off most of their longer term investors.

        I’m hoping they hit something worthwhile at Atlin, after now making it the flagship, so I can liquidate my position on any surge in share price.

          Mar 07, 2019 07:06 AM

          Excelsior. Thanks for the insight. Your conclusion has merit.

          Mar 07, 2019 07:25 AM

          The debt-ridden economy of the U.S. will eventually stagnate (at best), and when it does, permitting Montana mines will get easier. Local politics will beat the paper tiger Feds but it will be probably years in coming and silver will be much, much higher.
          All in all, I feel very good about the stock but it doesn’t hurt that my average price is well under 20 cents.

    Mar 06, 2019 06:03 AM

    Stewart is right about the following:

    Violent rallies like the one in 2016 are not sustainable. They cause a lot of investor price chasing as they peak and tend to end very badly.

    The fundamentals of this market are much different from 2016. Thatโ€™s why key research analysts at firms like Goldman are so positive on gold. Where gold goes, silver tends to follow.

    Silver can outperform gold without leading it. What I mean by that statement is that gold can be the first metal to make a new intermediate trend high, but the percentage gains for that move are bigger for silver. When silver leads gold, the market tends to be more speculative and thatโ€™s not healthy.

    Gains that are sustained come from a market where gold leads the trending action, and thatโ€™s what is happening now.
    http://www.321gold.com/editorials/thomson_s/thomson_s_030519.html

    Mar 06, 2019 06:13 AM

    Chris where do you see GDX target if gold breaks down under 1275, will miners follow or hold this area since they have been beaten up already.

      Mar 06, 2019 06:38 AM

      That would open the door to GDX in the 20.50 area which would fill that big January gap. The miners have held up extremely well during the last $30 drop for gold but I would expect a more normal 2 or 3 to 1 leverage to return if gold if starts a move to a significantly lower low.
      http://schrts.co/MQbyDqGZ

    Mar 06, 2019 06:43 AM

    Scorpio Gold Announces Completion of Waterton Buyout to Eliminate Senior Secured Debt and Acquire a 100% Interest in the Mineral Ridge Property
    http://pdf.reuters.com/htmlnews/htmlnews.asp?i=43059c3bf0e37541&u=urn:newsml:reuters.com:20190306:nGNX3ZGnH

      Mar 06, 2019 06:47 AM

      Your thoughts on gold charts showing a cup and handle patter forming. If you agree where do ypu see price area for handle to form move higher. Also how long does it take usually for handle to be complete before breakout 2 months??

        Mar 06, 2019 06:17 AM

        It is cup and handle-like but has already retraced more than the ideal 1/3 or less of the move up from the bottom of the cup.
        I expect at least a decent relief rally very soon and do not agree with those who think that it will be months before the February high is taken out.

        Gold has filled its January gap but I don’t see that as a sign that the miners must now do the same (but of course they might). Gold and the miners are in a new bull market but the miners are in a new bull market even when priced in gold.

        Stockcharts does a good job explaining the cup and handle:
        https://stockcharts.com/school/doku.php?id=chart_school:chart_analysis:chart_patterns:cup_with_handle_continuation

          Mar 06, 2019 06:37 AM

          This coment doesnt agree on you interview. You are nuetral to bearish here and only see bounce to 1310 and being sold into and charts telling you we could visit 1260 area. Mathew are you just giving your view or answering for Chris because interview above doesnt agree.

            Mar 06, 2019 06:53 AM

            Sorry for any confusion. My 2 cents are mine; I do not speak for Chris in any way.
            Chris Temple is good about answering questions in the comment section but I don’t recall Chris V. ever doing so, so I thought I’d take a crack at your question. Again, I apologize for not being clearer.

      Mar 06, 2019 06:47 AM

      Glad to see Scorpio Gold back to life again and moving forward. Also, it is good they now will own 100% interest in Mineral Ridge as I wasn’t a fan of having a secondary entity in the mix. Moving right along. We just need to get through the 2:1 reverse split and then most of weight will be lifted off their shoulders.

        Mar 06, 2019 06:05 AM

        Scorpio Gold Reports AGM Results
        Mar 04, 2019

        “At the Meeting, the Company’s shareholders also approved the renewal of the Company’s 10% rolling stock option plan, the re appointment of Davidson & Company LLP as auditors of the Company and the consolidation of the Company’s issued and outstanding common shares on a 2:1 basis, all as set out in the Company’s information circular dated January 30, 2019.”

        http://www.scorpiogold.com/s/news.asp?ReportID=846320

    RON
    Mar 07, 2019 07:34 AM

    Down Load button is missing, I am unable to download no pod cast today.