Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Register for free to join our community of investors and share your ideas. You will also get access to streaming quotes, interactive charts, trades, portfolio, live options flow and more tools.
Yes, that would be nice. That gap up in GDX is going to fill I'm pretty certain within a few days so we should be good to go I believe. Also DUST can't stay below the 20 day moving average forever. It's been below the 20 day moving average every single day except 1 day for 10 weeks. That is unsustainable.
I was sincere about that. I did want to accumulate back then. The chart was giving me the ok on it, but then I looked around and took a whiff of the fundamentals soon after and realized that there were going to be just too many "events" popping up like Yellen speeches and central bank meetings and FED officials yapping and jobs reports and knee jerk reactions etc etc for me to actually carry through with that plan. I then put my flipping hat on. Anyway, that was a good trade for me. Did well on it. Thanks for the memory :)
10 dollars? You saying you have been accumulating since 10 dollars? Or trying to say I have been accumulating since 10 dollars? For me no way would I have bought this at that time. Lower bollinger band falling off the chart and DUST didn't even have a mature pinch yet. No divergence whatsoever at that time yet either. That was not the place to buy. Then also during that time fundamentals were very bad. That was when the market was very shaky and people wanted "safe havens". No I was buying UWTI at that time.
OK, I'll hit you up via email over the weekend.
Sure, I'll private message you. I'll give you enough for you to get started and point you in the right direction. I won't go into deep detail though because how I make money and what I look for and see I have to keep some of that to myself.
Over the weekend I'll have some time and I will PM you with enough info that will point you in the right direction and get you started. From there you will have to study study study and get good with charts and candlesticks and indicators and know what indicators mean. Like for instance "O look, ADX is at 40" OK great but one needs to know what the hell that means (strength of trend by the way). Also have to learn fundamentals too. Then once you acquire the knowledge you will need to gain experience. You can have the knowledge of what to do but you also have to develop the guts, fortitude, skill, and experience to follow through on what to do. Let me tell you when the whole herd is going one direction and you go the other, that just isn't as easy as it sounds. You will need experience that will give you confidence that then allows you to trust and follow through with the knowledge you obtain.
There is no fast or quick way to do this and it takes a lot of study and work. As I said I can get you started but after that your success will depend on your own study, knowledge and experience that you obtain over time. Final thing is you will need to be very good at both fundamentals and charts. I like to say fundamentals tell you what to buy and charts tell you when to buy.
Whatcha talkin? I'm holding right now. 2000 shares. I said SOME won't hold overnight (wasn't talking about me) and I can understand their thinking. I don't have issues with it and am willing and do hold overnight often with this and other ETFs that are leveraged.
Hey John, yea many won't hold one of these 3 times ETFs overnight especially one that is influenced by a commodity (because the commodity trades all hours almost) and I can't fault that thinking. I'm holding my buys from the morning. I think that gap up in GDX is going to fill within days so if I want to get paid I got to be in.
SKLN I bought that yesterday at 18.4 cents. I have had it on watch for a month, finally bought it yesterday. I also have OREX PTX and a couple of others I've been watching but have not bought. I have KGNX on watch. I saw you and 514 over there but I never entered but I was very close. Still watching it, it didn't seem quite ready to me yet.
That wasn't a big surprise to me that GDX didn't fill the gap today. The 1/4 position buy I made was more so to flip in coming days, not so much to sell today. Today from the start I could tell miners would shine and I doubted it would wear off today. Maybe I get paid tomorrow or Monday.
What I do know is that the gap will fill eventually, they always do. GDX actually has several gap ups to fill. I expect the one today to fill within a few days. Then there is another at around $17 and I think that one will fill in 4-8 weeks. Then there is another gap to fill at about $15 and a half and then another one at about $13 and a half. Now those 2 in the $13 and $15 areas are going to take awhile to fill. Anyone with experience knows gaps fill 99% of the time. It could take 1 day, 1 week, 1 month, 1 year but they always fill. This is one of the reasons I like this trade and feel pretty comfortable and keep being willing to re-enter. Right now 4 gap ups in the GDX chart. Now it might be possible that this is the 1% time a gap doesn't fill. It is possible, it does happen but it is rare. GDX has 4 gaps though. No way all 4 gaps don't fill. No way that only 1 gap fills. Highly unlikely 3 gaps don't fill.
Gap downs I'd say fill about 80% of the time but if you take out the OTC market and micro and mini caps with the toxic warrants and notes and take out the bios that don't pass phase 3 or whatever type stuff then gap downs fill 99% of the time. Gap ups fill 99% of the time and the few times the don't are usually situations where company X looks to be almost bankrupt or something and sits at 20 cents but then a rabbit gets pulled out of the hat or there is some abnormal circumstance or whatever and then that company X stock jumps and runs from that point and never fills that gap from the first jump off point. For instance there were a bunch that did that in early 2009 when everyone thought everything was going bankrupt. Things like that.
In other words I am 100% sure that the gap today fills eventually. I am 100% sure the gap at 17 fills eventually. I am pretty confident that the gap at 15 whatever fills down the road. The gap at 13 whatever, that might stay and be the 1% exception to gaps always filling. No way all 4 don't fill and no way only 1 fills so at minimum I'd expect GDX to fall back down to that 17 area whenever it finally corrects to at least knock out 2 out of the 4 gaps in the chart.
I have seen a gap in a chart not fill before but it is very rare (especially a gap up). Most in a single ticker chart I have seen that didn't fill were 2. GDX and many miners have 4 gaps. No way at least two don't fill IMO and probably 3. It could take quite awhile though. I've seen gaps take a long while to fill on some occasions. Sometimes a few months and even a year or more I have seen.
Boy are you right about that. Everyone single person knows that when the FED goes out and yaps it hurts either in the short term or intermediate. Why they just don't shut up I have no idea. It is perplexing. They can't be so dumb not to know. Maybe they do know which would be even more twisted.
Anyway, yea I don't blame you. I'm going to hang around here and do my flipping thing for a little bit longer. Its been working so I'll keep at it until it doesn't work. BTW, LABD was a very good buy at close yesterday. I bought some of that yesterday and made 5% today.
lol, awesome thanks. Looking forward to it.
Yes they are and you are right. DUST does keep putting in lower highs. It has been good to me though these last few weeks however so I'm going to keep trading it as long as it is profitable for me.
I believe DUST has been below its 20 day moving average (middle bollinger band) for 10 weeks in a row. That is just not sustainable so I know eventually there is a big payday coming. Until it comes I will continue to flip for decent gains that might not be big individually but have been adding up for me.
Thank you, to you as well.
Yes, agree possible and doable and why I do have a 1/4 position. You are right about the miners. They have been strong like oak. It is by far the hottest sector this year.
Hey John, good to see you. How you been? I've been good. Yea that 2.83 buy should net you a decent profit. I've been here playing DUST and JDST the last 3 weeks and I'm batting 1000. 12 for 12 total between the two. My two keys here have been buying in increments and taking profit. I get even a decent profit I take it. Sometimes it is $200 and once as much as $800 but total of my 12 trades I'm up over $4000.
$2.83 should net you a decent profit eventually I believe.
What I'm going to do is hold what I bought this morning. It was a 1/4 position. Those are already cheap shares that eventually I will make a profit on.
I'm going to wait in cash that I have ready to go in case gold rips higher although 1240-1244ish has rejected gold yet again for now. I'm going to hold that 1/4 position in case miners fail and gap ups today fill (which everyone knows they will eventually down the road). For me shares are cheap enough but could definitely go cheaper but I want to at least have a starting position to be in the game right here.
Yes and I'm hoping that they yap like crazy, hopefully we can get some very cheap prices. Waiting and ready.
Yep agree, I bought a 1/4 position as I feel eventually I'll make money buying these prices but at the same time didn't jump in hog wild either because there may be even better prices looming.
I also grabbed some JDST at 4.88. DUST is near its 52 week low but JDST set a new one today. I perceive JDST to be a little bit cheaper then DUST right now.
I hit big on oil also. I posted and knew oil was going to bounce strong when it hit near $35 and I loaded up on UWTI at $17 and did very well.
Here I am 8 for 8 now on DUST trades and 4 for 4 on JDST trades. I figure I'll keep at it with these as I have a hot hand right now.
I made 2 buys this morning. Right now have 1000 shares at 2.92 avg. It is a 1/4 position for me. I never buy all at once. I like to be able to avg down so I usually buy in 4 or 5 stage increments. I buy on the way down in increments. Then on a pop sell when I have a decent enough profit. That is what I do and it works pretty well. It is very common for me to go red for a little while but most times I end green and can sell for decent profits.
Thank you and best wishes to you and hopefully profitable trading.
I also bought a chunk at 2.97 this morning. Also waiting with cash and wanting 2.80ish as next buy point.
Could be there will be a "delayed reaction". Don't know. Also could be since Yellen has already sounded dovish in recent weeks that part of the story is "baked in" already and won't move prices too much as the news that comes out is already known and expected. Just my thoughts.
A similar thing could happen as well the next time Yellen speaks. If she says similar what what she has already been saying then it isn't necessarily a guarantee the will be big price movements possibly. If she is dovish but everyone already expects it then maybe not much movement will happen. It is a crazy market and hard to anticipate the knee jerk reactions. I just stick to buy stuff when cheap and sell when expensive.
Good post, something to add to that good technical summary. Watch the 32 day moving avg on GDX. It has been the support line for a couple of weeks now. I suspect a break and hold below the 32 sma will signal the downturn.
I wouldn't worry about it. If minutes makes gold/miners go down and you miss it then another opportunity will be Yellen as you know.
My buy zone was DUST at $3 and/or JDST at $5.15-$5.25. The JDST one hit so I took it.
I picked up 5.25 on JDST on that gold spike.
It seems several of us have a similar thought on that.
I agree with that. I have owned NEM several times before. BAA looks like a good one. In the future when I can get into the sector again at better prices BAA is one I will consider, thanks.
The buy I made yesterday in after hours in DUST as I said "just in case". I sold it pre-market for another nice trade.
No position in DUST/JDST and waiting for another opportunity.
Cool Thanks, yea I know of HMY. Yea, HMY is one I would consider after a sector correction. Usually when I buy a miner I buy NEM for a "big boy" and I used to buy LSG for a "small fry". LSG merged so HMY might be a good small fry down the road to substitute with.
I wanted to ask you something. I very much believe that miners have a correction coming to them. I believe I will be right about that. I also honestly believe miners are very expensive right now. Having said that though this will not always be the case. At some point I could be able to buy a miner at a reasonable price I feel. I would probably add a miner to my portfolio at that time. I wanted to ask what miner do you like the most? Just wanted your opinion of which you consider the best to own.
Actually, going to go ahead and take a little taste right here and open a 1/5th position in DUST just in case.
Had a nice day. As stated earlier bought JDST 5.39 pre-market and already had 5.55s. Sold all at 5.85. Chose that as the sell point because it was yesterday's close.
Entered UWTI later on at 17.10. Oil bounced off $35 strongly just like I had said I thought it would in my post last night. Hope others were able to get some too right around there. That was easy money.
Right now no position in DUST/JDST. Looking to start a position again in DUST at about $3 and/or JDST at $5.15-$5.25. If they go lower then buys at 2.80-2.90 on DUST and about 5 on JDST.
Let's see what kind of prices are available tomorrow. I do like SGT Bone's plan and Abuelo's.
To use the fact that the S&P is overbought is not a good argument for you. The S&P is overbought. However, the S&P price to earnings ratio is about 20. Miners are at about 70 to 80 right now. If one thinks the S&P is expensive then miners are 3 to 4 times MORE expensive. That's just the numbers.
Anyway you don't need to concern yourself with me. I bought JDST this pre-market at 5.39. Then sold it and the 5.55 shares I was holding all at 5.85, yesterday's closing price. I know to flip as that is what the purpose of this instrument really is.
Ultimately miners are very expensive, I do not pay up for stuff. If others want to then they can have at it. As for me no thanks, people can try to sell their tired, overbought, over priced miners to someone else. I do not want them at this price.
Thank you Abuelo
With DUST it becomes clearer everyday to me that bottom is being carved and it has settled into a trading range for now but then should eventually uptrend out of that so I feel trading DUST should be safe and profitable as the downtrend looks to be ended and now just going through the basing process.
UWTI I am also watching close. I use the WTI crude chart almost completely for UWTI. I don't use the UWTI chart very much so I'll talk about it in WTI crude chart terms. I felt that when oil went over $38 that oil was going to then have to have a selloff as I thought anything higher in oil would cause the oil country leaders to get lackadaisical and start blowing off that freeze meeting. Sure enough that kind of happened. Anyway I also felt once oil started to sell off from low $40s that $35 would hit. It is close now, practically there. At $38 WTI I did a flip and another one at $36 WTI for small gains. My eyes have been on $35 ever since oil went over $40 though. I have not bought yet but I would bet that with oil down 9 days in a row and just knowing the trouble oil had getting past $35 resistance before that I bet oil bounces strongly from the high $34 to $35 range. I have been flipping UWTI since it hit $40 but now I'm starting to get interested in grabbing a more meaningful position soon now that oil properly corrected. As of right now I have no UWTI position.
That sounds like a very good plan actually. I think that will probably work out pretty well for you. I also believe there is one more gasp for GDX (miners) before they really selloff. DUST might hit $3 or just under one more time and yes I also like your "long" target of about 6 bucks once DUST gets its counter trend rally.
DUST chart is turning bullish slowly. RSI is now above 40. Bullish divergence showing on many indicators. More importantly GDX struggling to keep RSI above 50. Been over 50 for 3 months or something. GDX is teetering and GDX indicators are getting bearish and have bearish divergence.
I believe GDX gets over $20 one last time and then after that sets coarse for $17 land maybe a little lower, no lower then $15 I don't think and then it will have had its proper correction.
My DUST buy at 3.22 on Friday I just sold for a 16 cent a share gain (few hundred profit). Now 7 for 7 on DUST.
Also have 5.50s of JDST from Friday. Holding those right now. I figured for now I'd take profits in one and hold the other. Decided to hold JDST.
Cool thanks, and I will keep those dates/events in mind as I do look out for things like that. Only thing I myself won't do is buy NUGT at all right now. Miners are way too over priced for me and I have a rule that no way no how do I ever over pay for something. Certainly NUGT can provide a great trade still but with miners lofty valuations they scare me too much to even consider touching them.
I get some PMs recently from gold/miner bulls. They tell me to be on the right side of the trade and don't miss out. I tell them I am not taking a bet against gold. I am taking a bet against miners. There is a difference as you know. This DUST trade is more complicated then just which way gold moves. This is a trade against mining companies stock prices. Gold does not necessarily have to have a big selloff for miners to correct. Miners are too expensive in relation to metals right now anyway.
I have extrapolated the data every which way I can. No matter which way I do it or how the conclusion I get to is that miners are extremely expensive. I am a fair person. I don't look for one side or the other. I just want to make money. Probabilities are that miners selloff and a sharp drop in gold isn't even needed to accomplish it. This will continue to be a profitable trade as long as the old rule of buying low and selling high is followed IMO.
I myself am planning for 2 trades this week. Already 6 for 6 and I'd love to make it 8 for 8.
Good luck to you and hoping you have a good week.
Allow me to continue with a second post that will continue from that last one and first let me say thank you to you and others who appreciated the first post.
Continuing on from the last post let me begin by explaining monetary policy, economics and emotions and how that all effects gold and metals and therefore effects miners.
Tightening monetary policy is when a central bank raises interest rates. When they do this it lessens the "supply" of money flowing from before. This slows down borrowing because the costs of borrowing are more expensive. When there is inflation this type of monetary policy is needed. Inflation means the cost of things is rising compared to that currency. Inflation is actually healthy and wanted by central banks. Too much inflation is bad and inflation staying moderate is the balance that a central bank usually desires. If inflation (cost of things) goes up to fast then it can quickly outpace what consumers can afford. That is not good. Central banks will do rate hikes which is tightening of monetary policy if it thinks inflation is going up too fast. They tighten to slow down inflation.
Central banks also loosen monetary policy. This is where an economy is shaky and liquidity is drying up. They loosen policy and cut back interest rates to make borrowing money less expensive. They desire to do this because they want to pick up and help inflation in a struggling economy.
Gold is priced to the US dollar. As monetary policy dictates the dollar can get stronger or weaker. This then directly effects gold. This is how monetary policy effects the price of gold.
The second thing is demand for gold can increase (more buying) if the stock market is looking shaky. Some people will sell their stocks and sit there and want to put their money somewhere. Some choose to buy gold.
Uncertainty can also cause people to want to buy gold. This kind of comes with stock market problems or the market looking shaky though.
Now central banks have been stimulating and have been having loose monetary policy for many years now. Back in 2011 and 2012 gold and metals were doing really well as most figured this loosening monetary policy would cause a lot of inflation. As I said before that condition can lead to too much inflation which then makes the cost of thing rise a lot and gold is absolutely included in that.
Problem is that inflation never really came. This is why gold and metals have been doing pretty bad since 2012 because there just isn't any inflation. Central banks still have a loose monetary policy but mostly just to push back deflation. Deflation is the opposite of inflation and means the cost of things are going down. Deflation usually leads to recessions and in some severe cases even depressions. Prices of thing fall (including gold) during deflation. Cash is king during deflation. In 2008 the world had deflation and look at what gold did. It dropped hard like everything else that year. Deflation makes everything dump.
With lacking inflation that was not the cause for gold to just have gone up and have its best performance in 30 years this first quarter of 2016. It was that the stock market looked shaky the first couple of months this year. People went into gold as a "safe haven".
The problem though was economic data was not as bad as people were trying to say it was. Actually the last month or so economic data has been pretty decent. Now the stock market has recovered all looses from earlier this year. If the stock market continues to stay steady and maybe even go up some then the demand to want to be in gold will dry out. Those staying in gold for now are betting that a recession is right around the corner and the stock market will begin a plummet very soon. If this does not materialize soon then I believe gold will sell off more.
If the environment currently is that inflation is pretty weak and the stock market is hanging in there then that is not a great environment for gold because the 2 primary causes of gold demand are not present under those conditions. If gold just had its best quarter in 30 years then it will look expensive under those conditions.
Gold shot up after the FED talks dovish. Hawkish means they want to increase interest rates and dovish means they want to loosen. Right now the FED is actually neutral. Reporters say the FED is dovish but that is not accurate. They are not loosening. The FED is neutral right now. This is why those one day pops in gold get sold off the very next day recently. Chair woman Yellen along with some other members are saying they will raise interest rates 2 times this year. Their main concern is inflation is not nearly as robust as they would like. Now when gold jumps because the FED is sounding "dovish" but they are dovish because they feel inflation is lacking that really isn't a great condition for gold. This is why you see it sell off the very next day.
Gold needs a crappy stock market or strong inflation to go up and stay up and thrive.
I do not dislike gold. I like gold but I also do not pay up for things. I do dislike miners right now though. Gold and miners are not exactly the same trade. They do not trade in lock step with each other. At the start of the year gold and miners were oversold so they did have justification to have a run up and add the market condition at the time it was very reasonable.
Miners however got carried away. Their rise in correlation to gold's rise was out of whack. Miners went up way too much. Previous post of mine about the herd gives the reasons I believe miners are way too expensive.
Moving forward trading DUST I believe is a winner. I would suggest not to buy and hold. This instrument is not for that. It is for trading. I believe we are nearing a point in which miners will sell off and correct. This makes trading DUST easier because it is easier to make winning trades when the price of what you are trading starts to uptrend.
Some started buying DUST too soon and got hurt. That goes back to that previous post. One has to recognize the big picture and determine how far along something is in its trend.
From my experience I believe the downtrend in DUST is near completion. I never touched DUST until 2 weeks ago. I have made 6 winning trades and am 6 for 6. The also 2 for 2 on JDST. I post often when I buy and sell and it can be seen in my history.
As I believe the downtrend of DUST (and uptrend for miners) is exhausted it makes it pretty simple to make money. Buy low and sell high. If I get DUST at 3.20 one morning and it jumps to 3.50 I sell. If it gets to 2.98 and I buy and then 2 days later it is at 3.60 I sell. I repeat these steps. When DUST does start an uptrend which is not a matter of if but only when they I can continue to trade while it uptrends.
The nice part right now is feeling comfortable that the trends are exhausted. If I buy at 3.20 and it falls which has actually happened 3 times to me BTW, then no big deal. I buy even more lower and when I get a pop I sell and make a profit on all shares.
I wish everyone good luck and remember to buy low and sell high and also look at the bigger picture and at the same time get profits and take them.
Thank you.
To follow the herd can be dangerous. I do not post to get followers because I could care less. I do not post out of pride. I do not post to push some sort of agenda. My postings are to help less experienced and maybe teach some. I am not a professional but I am knowledgeable.
For those that are open minded and wanting to learn read what I have to say. Occasionally I will make a post like this to kind of teach and give lessons from experience so that those with less knowledge/experience have something useful to read.
The goal is to buy low and sell high. That is the whole purpose of trading. There are some that say follow the trend. The trend is your friend. Yea, well it is until it is not. Nothing has ever or will ever go into a trend whether up or down and not break out of that trend or have counter trends. The herd will say the current trend will continue no matter what. The stock/asset will continue to trade according to that trend no matter what. Believing that will cause failure 100%. It has never happened and will never happen.
Trends get exhausted and they do end. It is not an if but only a when. What people have to get good at is knowing when a trend is about to end or is close to it. It goes back to the goal to buy low and sell high. Knowing when an uptrend is about to end tells you you should be selling (sell high). Knowing when a downtrend is about to end tells you you should be buying (buy low). It is imperative that YOU DO NOT DO the opposite.
Now the herd, well they do the opposite a lot of times. That is just the way it is. They follow the trends to much and can't recognize when a trend is reaching its end. Now what are signs that a trend is nearing its end. Since this is the DUST board I will use the miner sector as the example.
-Gold just had its been quarter in 30 years. If this was its best quarter performance in 30 years is it more likely for that to repeat this next quarter or is it more likely to correct down this next quarter?
-Gold miners just went up on average about 100% or so the 1st quarter of 2016. Is it logical to think that would continue or is it logical to think they need to have a correction down?
-Gold miners have price to earnings ratios of 70 to 80. S&P 500 average P/E ratio is about 18 to 20 or so. With miners getting that kind of multiple right now is it more likely they are to get even a higher ratio or is it more likely they sell off so that their ratio comes down more in line with what they are historically?
-Do homework and look at balance sheets of miners and look at their debt. Are they highly profitable to deserve such high price to earnings ratios? Are they in rampant growth to deserve these lofty valuations? Do miners have a whole lot of debt? Does the overall balance sheets of miners look really good or not so good? Do their balance sheets and earnings match what their valuations are?
-The charts of gold miners and miner ETFs have RSIs that have been over 50 going on 3 months now. Is it more logical to think the RSI of these will continue over 50 or is it logical to think that is unsustainable? Go back and look through the history of miner and miner ETF charts. Go back years and see the big picture. Do these uptrends always continue? Do RSI levels never go below 50? Does the current uptrend look near its end?
-Have a look at DUST and the charts the same way. Look at the big picture. Do downtrends always continue. Does the RSI always stay below 50? Does the current downtrend look to have slowed considerably or even look to be very close to an end?
Most people day trade this and that is fine. I flip it a lot myself. I would say though do not get so buried in the single day that the bigger picture does not get seen. Again remember the goal. Buy low and sell high. Do homework and review. Come to a conclusion from your own homework and decide if buying miners right now would be buying low or would it be the opposite and be buying high.
Review trends and decide the probabilities that current trends are sustainable or are they unsustainable and need a correction.
What is the herd saying as the herd is almost always wrong. The herd buys high and sells low. Is the herd overly optimistic on miners or overly pessimistic on miners? Remember to do opposite of the herd. When the herd hates something then usually it should be bought. When the herd loves something then usually it should be sold. The herd buys high and sells low, the goal is to buy low and sell high. Do you wish to be part of the herd or do you want to win?
Last thing is trends at times can seem like they will never end. At times they can get to extremes people did not think were possible. Just recently I remember oil was in a horrific downtrend and everyone (the herd) thought it would continue indefinitely. It did not continue, it ended and oil went on a major run. Just recently once people (the herd) believed oil could never come down again that the uptrend would go on indefinitely is when oil turned around again and has now dropped 8 days in a row.
The point is that the herd is foolish and if you choose to follow the herd you almost certainly make very bad buy/sell decisions. The market does not make it easy to make money. Trends get to the extreme, the herd goes only in the direction that they are lead to go. To make money you wait for trends to be exhausted (both fundamentally and technically) and for the herd to be at their most optimistic or most pessimistic point and then you buy/sell accordingly.
You can make your decision but make sure you do your homework and remember the goal is to buy low and sell high.
I'm going to buy back soon now. Another 20 cent a share gain for me again today on a flip. I kind of figured "dip buyers" would buy up more miners.
Gold bugs will continue to tell the world miners are going higher. Don't believe them. Think for yourself.
1) Miners have bad balance sheets
2) US economic data has been fairly good.
3) Miners are actually the weakest part of the labor market currently as the latest jobs report showed.
4) Miners are up over 100% in just 3 months.
5) Miners are very over-valued with P/E ratios of about 70-80.
6) Gold has been downtrending for last couple of weeks, putting in lower highs and lower lows.
7) Almost all miners have gap ups in their charts from about a month ago that almost always get filled.
8) Miners have horrendous growth
9) Miners pay miniscule dividends if any at all
10) Miners profits are unsatisfactory
11) Miners have very heavy debt burdens
Gold bugs will say miners will continue higher. I think they are very wrong and can't see the very big correction that should come in that sector that is staring them in the face.
Do they think there is a law that miners only go up? They are up 100% in 3 months, are they supposed to go up 200% how about 300%, why not 1000%? Are P/E ratios of 80 not inflated enough? Does the miner sector deserve P/E ratios over 100? How about 200. It is non-sense.
Let us all just stick our heads in the sand. Pay no attention to fundamentals or charts even. Gold bugs say miners must go up! It's a law!
Alright just entered with a new starting position in DUST at 3.22
Yes, from what I see I am looking at GDX chart. It is topped out and is showing a hump forming. GDX is currently 2 weeks behind gold chart. "Dip buyers" keep coming in to support but selling pressure is increasing as time goes on. Outflows in miners increasing. The dip buyers are starting to get out paced buy sellers and this is increasing. From there it will accelerate. That's what I predict anyway for the next 3-6 weeks or so. Good time for flipping DUST, makes it much easier when it gets into an uptrend.