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.
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