URGENT: A master trader’s update on gold stocks

From Jeff Clark, editor, S&A Short Report:

… I’ve argued for the past couple weeks that the technical setup in the gold sector is unfavorable for new purchases.

Miners are up 15%-50% in two months. The big money wants to buy on pullbacks, not into an overbought sector.

But every time the Market Vectors Gold Miners Fund (GDX) drops even a few pennies, buyers step up almost immediately. That’s preventing a more significant pullback from occurring.

Here’s an updated chart of GDX…

The rally in the gold sector really kicked into gear in January when the nine-day exponential moving average (EMA) crossed over the 50-day moving average (DMA). For the past couple weeks, though, GDX has been consolidating at resistance around $26.50. That matches up with last October’s highs.

Rather than declining toward the support of the 50-DMA, GDX is marking time and giving the 50-DMA time to rally toward the current price.

That’s bullish action. It tells us that GDX may be ready to make a run up toward the $30-per-share target price – its August high – sooner rather than later.

And that means the big money will be looking into cheap stocks that are lagging behind the sector’s overall push higher.

Crux note: Jeff just sent his latest gold trade to S&A Short Report subscribers this morning. He says readers could quickly make 135% or more as one lagging stock “catches up” to the rest of the sector.

If you’ve ever considered joining Jeff, there’s never been a better time to come aboard. He expects to recommend several more trades with triple-digit-gain potential as the gold stock rally continues this year… And the profits from just one of these trades could easily pay for a full year’s subscription.

But if you act before MIDNIGHT tonight, you can receive every trade Jeff recommends without paying the normal subscription price. Click here for all the details.

More on gold and gold stocks

Steve Sjuggerud: It’s official… the gold crash is over

This chart shows why you should own gold stocks today

The latest data say gold is becoming a “safe haven” again

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