Gold Stocks Gather Steam

By Adam Hamilton, CPA – Re-Blogged From Gold Eagle

Gold stocks’ young upleg is gathering steam, marching steadily to higher lows and higher highs. These bullish technicals are gradually improving sentiment, fueling mounting interest in this contrarian sector. That’s helping the gold stocks regain lost ground relative to gold, the driver of their profits. Fundamentals are growing more favorable as gold itself powers higher. All this portends much-bigger gold-stock gains coming.

Despite a strong rebound upleg in recent months, the gold miners’ stocks are still flying under the radars of most speculators and investors. They aren’t aware the gold stocks are running again, and likely don’t realize how massive gold-stock uplegs can grow. That’s unfortunate, because the biggest gains are won early in young uplegs before they are universally recognized. Buying low early on is the key to multiplying wealth.

Continue reading

Advertisements

Did We Just Witness The Bottom In The Gold Market?

Mr. Market the Great Deceiver

Markets are deceptive…but we all know that.  Beyond deceptive, markets are actually down right diabolical.  Mr. Market operates through his two most trustworthy lieutenants Mr. Bull and Mr. Bear.  He has tasked Mr. Bull to climb and reach the top of the mountain using investors buying power to fuel the rise.  But he has also instructed Mr. Bull to not allow those same investors to complete the journey themselves, he wants to reach the top without them.  It’s a hard job to pull off and Mr Bull needs to use every trick in the book to throw off these investors after they use their money to power the trend upward.  It’s a process that takes time and Mr. Bull’s prime tools are greed and fear in the minds of investors.

Continue reading

Gold-Stocks Forced Capitulation

By Adam Hamilton – Re-Blogged From Gold Eagle

The gold miners’ stocks suffered a rare capitulation selloff over the past month or so.  Selling cascaded to extremes as stop losses were sequentially triggered, battering this contrarian sector to exceedingly-low levels.  While very challenging psychologically, capitulations are super-bullish.  They rapidly exhaust all near-term selling potential, leaving gold stocks wildly oversold and undervalued which births major new uplegs.

Capitulations are quite rare which makes them inherently unpredictable.  The vast majority of selloffs end normally well before they snowball into capitulation-grade plummets.  But very seldomly heavy selling just continues to intensify rather than abate like usual.  The word capitulation means “the act of surrendering or giving up”.  That’s exactly what happens in these extraordinary selling events, traders stampede for the exits.

Continue reading

Cheap Gold Stocks Basing 2

By Adam Hamilton – Re-Blogged From http://www.Gold-Eagle.com

The gold miners’ stocks are drifting listlessly in the summer doldrums, largely forgotten by investors and speculators. They are missing a fantastic opportunity to buy low in this barren sentiment wasteland when no one else wants to. The gold stocks remain exceedingly cheap relative to the metal which drives their profits, and they continue to establish a strong technical base. They are ready to soar as gold returns to favor.

Gold-stock investing feels pretty thankless these days, like an exercise in self-flagellation. Thus there aren’t many traders left in this realm. Week after week as gold stocks continue to drift on balance, the ranks of remaining investors and speculators dwindle. Interest in this sector is among the lowest I’ve ever seen in decades of actively trading gold stocks. They’ve been left for dead as contrarians vanish.

Continue reading

Cheap Gold Stocks Basing

By Adam Hamilton – Re-Blogged From http://www.Gold-Eagle.com

The small contrarian gold-mining sector remains deeply out of favor, universally ignored. Thus the gold stocks are largely drifting listlessly, totally devoid of excitement. But that’s the best time to buy low, when few others care. The gold stocks continue to form strong technical bases, paving the way for massive mean-reversion uplegs. And they remain exceedingly cheap relative to gold prices, which drive their profits.

Being a gold-stock investor feels pretty miserable and hopeless these days. The gold stocks have been consolidating low for 14.2 months now, stuck in a seemingly-endless sideways grind. There are still gains to be won, but they are mostly within that low-trading-range context. We haven’t seen one of the huge uplegs gold stocks are famous for since the first half of 2016. So most traders have given up and moved on.

Continue reading

Gold-Stock Upside Huge

By Adam Hamilton – Re-Blogged From http://www.Gold-Eagle.com

The gold miners’ stocks have huge upside potential in 2018, likely the best among stock-market sectors. They really lagged gold last year, so a major mean-reversion catch-up rally is coming. The gold miners are universally ignored and deeply undervalued relative to the metal which drives their profits. And gold itself is likely to power dramatically higher this year as euphoric record-high stock markets inevitably start to falter.

Gold has always been the leading contrarian investment, tending to move counter to stock markets. So not surprisingly investment demand stalled last year as the extreme taxphoria-fueled stock surge blasted relentlessly higher. When stock markets apparently do nothing but rally indefinitely, investors feel no need to prudently diversify their portfolios with the anti-stock trade gold. So they ignored the yellow metal in 2017.

Continue reading

Major Gold-Stock Breakouts

By Adam Hamilton – Re-Blogged From http://www.Gold-Eagle.com

The gold stocks are off to the races again, with big gains mounting. They just staged major breakouts, shattering a vexing consolidation that had trapped them for an entire year. Such momentum early in gold’s strong season is a very-bullish portent. As higher prices improve both technicals and sentiment, buying begets more buying. With gold-stock prices still quite low in secular terms, their upside remains huge.

Gold stocks are a small contrarian sector without a wide following. So their latest surge has surprised many investors and speculators. But it shouldn’t have. In the markets knowledge is profits, so staying informed about gold stocks’ fundamentals, technicals, and sentiment is crucial. The traders who did their homework this summer and bought in low when few others were willing are now sitting on fat unrealized gains.

Continue reading