Author: admin

Position Yourself for Fall Fireworks

Posted on by admin

The Gold Report: On June 11, on GoldStockTrades.com you wrote, "Some of my charts are showing a potential reversal in the precious metals." What are those charts telling you in late July?

Jeb Handwerger: In early June it appeared that the junior miners tracked by the Market Vectors Junior Gold Miners ETF (GDXJ), which I use as a proxy for the junior gold miners was making an inverse head-and-shoulders pattern between $34 and $35. Then the junior miners had a very strong rally in June, with an intra-day high of $46. Now we're forming what I believe is a potential crossing of the 50-day and the 200-day moving averages a golden cross. This could signal the final turn from a secular bear market to the beginning of an uptrend.

TGR: Is gold close to a golden cross? Continue reading "Position Yourself for Fall Fireworks" →

John Hathaway and Doug Groh: Buy Gold Like It's 1999

Posted on by admin

The Gold Report: In a 4th of July investor letter, you wrote that the precious metals complex, both mining shares and bullion, appear to be in the process of completing a major bottom, and you're more comfortable with the proposition that the downside potential has been fully exhausted. What are the signs that it's really turning this time?

John Hathaway: The gold futures chart is showing that we are in the process of a reverse head-and-shoulders pattern, which is a sign that a bottom has been completed. It means that downward momentum has been exhausted. This bottom will be confirmed when gold trades above $1,400/ounce ($1,400/oz), which is a stretch from where we are. At least we can say fairly credibly that it's shaping up to be a bottom, but we may test it over the summer.

Source: International Strategy Investment Group LLC

TGR: Are statistics on money flows telling you that investors are starting to get interested again? Continue reading "John Hathaway and Doug Groh: Buy Gold Like It's 1999" →

Next Gold Buying Opportunity May Be Just Around the Corner

Posted on by admin

By: John Kosar of Street Authority

Major U.S. indices closed mixed last week, with the broad-market SP 500 and tech-heavy Nasdaq 100 closing higher and the blue-chip Dow industrials and small-cap Russell 2000 closing lower. The bigger takeaway to last week's lack of direction is that the bellwether SP 500 has been moving sideways for the past month and is essentially unchanged since July 1.

This recent loss of upward momentum suggests some distribution/profit-taking has been occurring and defines a near-term decision point in the index, bordered by 1,986 on the upside and 1,953 on the downside, from which its 2014 advance must resume if still healthy and intact.

Small Caps, Volatility Will Be Key Again This Week
In the July 14 and July 21 Market Outlooks, I pointed out that the Russell 2000 and the Vanguard Small Cap Growth ETF (NYSE: VBK) were situated right on top of major support levels and amid favorable conditions to resume their 2014 advances -- if they were still valid. Following initial rebounds, Friday's sharp decline positioned both back on top of these levels -- 1,143 on the Russell 2000 and $121.53 on VBK. Continue reading "Next Gold Buying Opportunity May Be Just Around the Corner" →

Why The Next Stock Market Crash Could Happen Any Day Now

Posted on by admin
By: Nancy Zambell of Street Authority

A "follow-up" market crash could be coming.

I don't mean to scare you, but it's only a matter of time...

The past two happened like clockwork -- seven years apart. One happened just before 2001, after the dot-com burst. The other came with a vengeance in 2008, right after the housing collapse.

It's getting close to another seven years... so what about this time?

Are we headed for a "follow-up" market crash?

 

The very idea of losing more than half of your invested wealth in a market downturn is daunting.

Market analysts claim to know exactly where the market is going, and act like they know exactly when to buy or sell stocks. But how many analysts do you remember saying months before the 2008 financial crisis that the market was going to go down by 57%? Can you name one? Continue reading "Why The Next Stock Market Crash Could Happen Any Day Now" →

Three Reasons Why Gold and Gold Stocks Will Rise

Posted on by admin

The Gold Report: Over two days, July 14 and 15, the price of gold fell over $40 per ounce ($40/oz), more than 3% of its value. To what do you attribute this drop?

Jeffrey Mosseri: I don't think it was a very extraordinary event. Gold has been trading around $1,300/oz. We see sharp upward and downward movements triggered by, for instance, something Federal Reserve Chair Janet Yellen said or a negative report by Goldman Sachs. It looks as if gold will stay in the $1,300/oz range for a little while. We'll see which way it breaks out. We believe it's going to break out on the upside.

Douglass Loud: Gold had been running up for a while, and every so often investors want to take some money off the table.

TGR: How high do you believe gold will go?

"We like North American Nickel Inc.'s Maniitsoq nickel sulfide project in Greenland."

JM: The average sustaining cost of production for gold is about $1,500/oz. If gold continues to trade below that level, at some point no new mines will be brought on. Supply and demand indicates higher prices for gold. At the same time, we're dealing with a seasonal trading pattern. Usually the position for those commodities tightens up around September/October. We think this will happen again this year. Higher prices? Yes. How much higher? We don't know.

TGR: Given that the financing for junior gold companies collapsed years ago, shouldn't the concomitant shortage of new supply have led already to higher prices? Continue reading "Three Reasons Why Gold and Gold Stocks Will Rise" →