The message of the tape (market) for gold stocks reflects a contraction of downside force in the short-term trend. The 12/02 breakout gap has been close several times on shrinking volume. The probing and close above support on a contraction in volume illustrates a bullish setup. A market that cannot break support with force will reverse and retest resistance with force. A break of the power down trend line (PDT) in trend energy, REV(E), will confirm a short-term trend inflection.
Gold Miners Index ETF (NYSE:GDX):
Don’t let 5-minute charts and analysis blind you of the secular trends. The Masters Jesse, Richard, D.W., Bart, etc. have passed down “the one lesson” that cannot be ignored.
“Cut your losses, and let your winners run”
Those that live in the world of 5-minute charts and analysis will always be blind to the secular trends. The secular trends provide generational profits.
S&P Gold (Formerly Precious Metals Mining)*
*S&P Gold from 1945, Barron’s Gold Stock Index from 1939-1945, 1922-1939 Homestake Mining:
Eric De Groot’s Insights is a forum that uses the markets as the ultimate teacher and provides unique perspective on capital market, economic, and geopolitical trends. Eric De Groot is a trader/investor, founder and editor of Insights, market & economic researcher and historian, CIGA Eric on jsmineset.com, and BS & MBA.