GOLD/GDX/GDXJ - GOLD SECTOR NEAR TERM GAMEPLAN
Gold stocks have been super-weak since the big top in August of last year. One could argue that last year's bull run was just a bear market rally. I made several attempts to play this sector on the long side since January but even as gold made new highs around 1300, gold stocks failed to make new highs and just sat there - a big warning sign.
We can expect the Dollar to make a cycle low soon and then gold will have a hard time rallying for the next months. This might be a good shorting opportunity for people who are into shorting. I'm not shorting but instead waiting for a good buying opportunity on the long side (as noted in my chart above. We might even get a stop run of the December lows. I am trying to be prepared when that happens!
We can expect the Dollar to make a cycle low soon and then gold will have a hard time rallying for the next months. This might be a good shorting opportunity for people who are into shorting. I'm not shorting but instead waiting for a good buying opportunity on the long side (as noted in my chart above. We might even get a stop run of the December lows. I am trying to be prepared when that happens!
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Hold onto your hats!
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Optimistic goldbugs still hoping for an "around the apex" move. I'm not one of them.
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bounce possible tomorrow...