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Extreme breadth in the HUI and GDXJ, plus comments on the coming monthly close for gold and silver

Cory
May 26, 2021

Jordan Roy-Byrne, Founder of The Daily Gold joins us to outline some of the extreme short term breadth levels in HUI and GDXJ. With 100% of stocks in the HUI over the 20 and 50 day moving-averages and 96% of the stocks in GDXJ are over those moving averages as well. We also recap the strong month of May for gold and how gold and silver are set up for June.

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

Discussion
37 Comments
    May 26, 2021 26:43 PM

    Jordan why don’t you adjust your portfolio and show true percentage gains not the fake gains because you closed out your portfolio last year in March at bottom of gold price only to buy it back week later so all those looking at portfolio you show max gains from buying at lows in market.
    Why don’t you show what you lost when you sold in march and adjust the percentage gains, have some integrity.
    Your not up 150 percent in one year but only 40 percent at best and that’s over 3 years.
    Knowing this makes me think it’s a fake portfolio not real money or you not give back close to 80 percent profits while watching gold stocks tank last year anyone with any good sense would have sold. Your suppose to have 20 percent stop loss on portfolio stocks why you watch them go down from January 2020 to big loss in March 2020. No integrity.

      May 26, 2021 26:27 PM

      Totally delusional. My portfolio is like 5% from the all-time high, made in January 2021, and is actually above the August 2020 high. That includes all dumb mistakes I’ve made. The fact you are questioning my integrity is an alert to everyone reading this that you need help. By the way, I actually buy stocks AFTER subscribers. Performance would be better if I bought at the same time.

        May 26, 2021 26:57 PM

        +1 Jordan. Many of us here really appreciate your insights on technical levels, macro economics, and the mining stocks. Ever Upward!

          May 26, 2021 26:15 PM

          Rats stick together.
          Pump up so everyone buts newsletters, all you do is post fake money portfolio’s.

            May 26, 2021 26:55 PM

            ??? Not sure what gibberish you are even spouting, but if you are going to post, try offering some value to the site, instead of just trolling Jordan and Chris Vermeulen all the time and being negative.

            May 27, 2021 27:49 AM

            Go Jordan! Great info and we appreciate it.

    May 26, 2021 26:24 PM

    (LIO) (LOMLF) Lion One Encounters Numerous High-Grade Intercepts at Its Tuvatu Alkaline Gold Project

    by @newsfile on 26 May 2021

    https://ceo.ca/@newsfile/lion-one-encounters-numerous-high-grade-intercepts

      May 26, 2021 26:27 PM

      A good comment from Bob Moriarty (@fingerprint42) over at ceo.ca regarding Lion One’s presser:

      @fingerprint42 – “Guys: The real news here isn’t the intercepts, it’s the six drill turning. This is giant news. They still are sitting on $65 million in cash giving them a real value of $130 million and that is cheap.”

      https://ceo.ca/lio?5447d05c2cbd

        May 26, 2021 26:23 PM

        Thanks Ex for the update. I have been ignoring it as nothing has been coming out of the company. I have reduced my share count due to inactivity.

          May 26, 2021 26:53 PM

          I’ve just been holding my Lion One position and not really trading it, but with 6 drill rigs turning, they are getting serious and I may add a bit to get in front of what I expect will be substantive news flow over the next few months.

            May 26, 2021 26:09 PM

            Thanks for the note on Lion one—I don’t own any shares in this company but will in all likelihood take a position soon. I like the technicals right now although for a lot of companies I’ll wait to add until the calendar rolls over into June. June may be a difficult month for the PMs.

            May 26, 2021 26:17 PM

            I like that Lion One is a developer moving towards smaller scale production on what they have defined thus far, but that isn’t the main reason I’m invested. The big prize is that now that they own the whole caldera and can really spread out and explore their land package, they may end up delineating a truly world class alkaline deposit. Most of the large alkaline deposits, except this Tuvatu asset of Lion One, are held by the Majors, because they can grow to be 10-40 million ounce Tier 1 deposits. Also many of them get much higher grade at depth, which is what Quinton H. was pointing out when discussing Tuvatu, and their deeper drill holes last year seemed pretty encouraging. Now they’ve released the hounds… with 6 rigs turning, so I’m interested to see how this year’s exploration program goes.

            May 26, 2021 26:25 PM

            Hi Doc. As for the Gold price and the miners, I’ve been noticing that even with the metals heading higher lately, the Jr Miners and Silver has not really been moving with the leverage we normally see. As a result, I’ve been concerned that maybe that is a signal things may roll over for a bit in the PM sector to take a breather in June, after Gold and the Seniors & Royalty companies just put in a really solid April and May. GDX and GDXJ (which contain mostly major producers, mid-tier producers, and royalty companies) have done well, but the smaller junior miners have not played along quite as much (with a few standout exceptions like companies in the Newfoundland area play and a few explorers that hit fantastic grades).

            Many technicians are watching to see if Gold can close decisively above $1900 on Friday for the weekly/monthly close, and if Silver can break above $28.50 on a closing basis for the week/month. Those levels are within range, but I’m more interested in seeing Gold break above that $1960’s congestion zone of many prior peaks & troughs, and see it as the resistance level to watch, where Gold may get swatted back down.

            Regardless, Gold is going to have a nice green monthly candle in May, like it did in April, so it wouldn’t be a surprise for it to take a breather in June and cool it’s jets a bit.

            May 26, 2021 26:42 PM

            I added more LOMLF on Mon. It’s a great long term play.

            May 26, 2021 26:07 PM

            I am watching Friday also. I had a great Monday and found that evidently no one else did which was confusing. Tuesday they started out taking 40% back, but I thought that was to balance US/Canada since Monday a Holiday for Canada. Surprisingly Tuesday was almost a wash which was positive. This morning was pretty much good around the world until the premarket smash which I wrote off as illegal intervention and would have to see how things went the rest of day. It ended with an afternoon intervention with an all day agenda of taking gold down. Could be the unfavorable reception of the bankers before the Senate Finance Committee. They sometimes flex in those moments . One Senator ask that they refrain from a “State oriented Capitalism” as he felt there was some indication they were supporting that as a business plan. I am concerned but look to the end of the week.

            May 26, 2021 26:22 PM

            Noticed on the Investing.com chart for Gold there was another take down in paper contracts at 6:30PM CST. Of course, that is when all of us sell our paper contracts to get the best price. But, looks like a continuation of the theme of the week.

            May 26, 2021 26:26 PM

            Here is a 1 year daily Gold chart showing that congestion zone in the low $1960’s, that is the next major resistance point for the yellow metal.

            There was a doji indecision candle today which may indicate a shorter term pullback, but ultimately, for gold to make a run at the all time high of $2089, then it needs to first close decisively above that $1962-$1966 resistance zone.

            https://cdn-ceo-ca.s3.amazonaws.com/1gatt25-Gold%20Chart%20Resistance.JPG

            May 26, 2021 26:20 PM

            The pattern seems to be a massive dump of contracts, within a short period of time, exceeding position limits, and probably during periods of low volume and/or participation. Obviously doesn’t have to happen again… but the message has been don’t expect another result unless you think you can do something about it. We need to be cautious.

      May 27, 2021 27:06 AM

      The Biggest Secret To Becoming A Successful Market Speculator

      by @Goldfinger on 15 May 2021

      Most newer traders focus on which stocks to buy and what price to buy at, for them “setups” are everything.

      “While picking bullish stocks is obviously important, as is buying these stocks before they go up, the truth is that there is always a bull market somewhere and there are always going to be good trade setups out there. Most traders don’t spend any time focusing on mindset and “getting their mind right” in order to optimally and effectively profit from all those great trade setups. They also spend a lot more time focusing on how much money they’re going to make if they’re “right”, as opposed to what they could lose if they’re “wrong”. ”

      “Trading psychology isn’t as much fun as talking about the latest 10-bagger stock or the latest shitcoin that just did a 100x. Our tendency as human beings is to focus on our biggest wins and all the things that could go right, while glossing over losses and our worst trading/investment choices. However, today I’m going to reveal a secret that I’ve learned from three decades of trading markets and experiencing many 1,000%+ winners, and many -80%+ losers.”

      “Mindset is everything.”

      https://ceo.ca/@goldfinger/the-biggest-secret-to-becoming-a-successful-market-speculator

    May 26, 2021 26:50 PM

    (WDO) (WDOFF) Wesdome Expands Recently Discovered High Grade Footwall Zone Over 300 Metres Down Plunge, Drilling 41.2 g/t Gold Over 51.1 Metres Core Length

    by @nasdaq on 19 May 2021

    https://www.wesdome.com/news/press-releases/index.php?content_id=405

    May 26, 2021 26:10 PM

    Gold has some Fibonacci resistance around 1930 but it could easy squirt higher as shorts cover and FOMO builds in those who’ve sold out.
    https://stockcharts.com/h-sc/ui?s=%24GOLD&p=D&yr=1&mn=1&dy=0&id=p17735018128&a=954813476

    May 26, 2021 26:52 PM

    I don’t recall if I posted about this on the weekend or not but for the first time ever, the XAU, HUI, GDX/GDM, GOAU, SIL, SILJ, USERX (the oldest gold mining mutual fund) and ASA all kicked-off this intermediate term advance with weekly closes above their newly expanding Bollinger Bands last week. While that will be seen as a good chance to sell by many risk averse traders, it is really an impressive and bullish show of strength. Trending moves often begin that way and are followed by further weekly closes above the Bollinger Bands. The above indexes and funds usually do close above their weekly Bollinger Bands during powerful advances but they have never done so all together, especially at the beginning of a move rather than in the middle or near the end of a move when they are more likely to.
    Of the bunch, only the XAU is stretched with 3 weekly closes above its weekly BBs…
    https://stockcharts.com/h-sc/ui?s=%24XAU&p=W&yr=5&mn=11&dy=0&id=p89728405873&a=949748838

      May 26, 2021 26:55 PM

      Gold now looks likely to follow the miners’ lead with a confirming weekly close of its own above its weekly BBs…
      https://stockcharts.com/h-sc/ui?s=%24GOLD&p=W&yr=3&mn=3&dy=0&id=p23972776814&a=712774405

      May 26, 2021 26:55 PM

      interesting ……..

        May 26, 2021 26:19 PM

        I’ve followed Doc’s advice & raised some cash.

          May 27, 2021 27:13 AM

          I trimmed back some positions this week to do a little bit of the same Buzz, but was hoping to see a bit more strength in the miners to lighten up into, and await Thursday and Friday to see if the miners pop a bit more to do any other trimming.

    May 27, 2021 27:02 AM

    I’m not in the mood trimming and cautious mood these days, I feel gold could start to really squirt higher at any moment. The only trimming I am contemplating is on my Trim Tramp work bench in the garage. DT

    May 27, 2021 27:12 AM

    For anyone who invested in mind med this would be of interest
    https://thedeepdive.ca/mind-medicine-sees-ceo-sell-24-7-million-in-company-stock/

      May 27, 2021 27:51 PM

      I’ve got a position in MindMedicine, and get that company officers need to pull profits from time to time, but that was a big sale of shares from him. Still, they are the market leaders in the psychedelic therapies space with the most molecules in their portfolio and some of the most for review for trials and research.