14 thoughts on “CHART OF THE DAY

  1. MuffinTop

    Gary, I’m having a brain fart and am in need of your perspective..
    If stocks are on their way down, shouldn’t that ‘technically’ bolster the US dollar for ‘safe haven’ sake and f*ck up Gold/Gold Stocks in the process?

    1. gary Post author

      Lately it has been the opposite. When stocks go down they have taken the dollar down with them.

      I’ve noted before that intermediate cycle lows in the stock market usually correspond with either a top, or a bottom in the dollar. This latest round looks more likely to fit with a bottom in the dollar.

  2. Gary

    Gary, if THE bottom is in for gold and gold mining stocks, why should I be so concerned with the pullback to the 10 DEMA? No need to worry about losing dimes when the dollars are ahead of us, right?

    1. gary Post author

      As long as you aren’t heavily leveraged no problem. However if you are leveraged it’s going to look like the metals are turning back down and you would very likely get knocked out of your position.

  3. Bud Fox

    One shouldn’t be in a leveraged position at all in gold.

    Except for a blip in late 2012, gold has been making lower lows and lower highs on a weekly basis for 4 years.


    Now break $1223 and $1294 and it’s a different story.

  4. MuffinBottom

    Well Gary, when you advertise and predict epic rallies that only come around once in several blue moons, when you offer money-back guarantees on subscriptions and when you tout that no one but you will be in such a rally, who do you think you’re talking to and who is gonna listen to you – seasoned top professionals, George Soros, Stan the man Drunkonmillerbeer or the dumb money who is gonna mortgage their life to turn a 40-50% rally into a 400% return?

    1. gary Post author

      “epic rallies”?

      I just think gold is due for a strong counter trend bounce. Yes it may be the bottom of the bear market but we can’t know that yet.

      1. MuffinBottom

        “Epic” is a fitting description in light of the tone and tenor of your recent posts. The point is, as you’ve done in the past: you ALWAYS need to emphasize the dangers of leverage before the trade.

        Those who will be hurt are the newbies, those who don’t learn from prior mistakes and those who will soon make such mistakes.

        You’re a rock climber and lifting coach. I assume you don’t lead others off cliffs or over-leverage them with weights that will ruin their spines, knees or lives.

        1. Jorgy

          You make some very good points Muffin Bottom. I once was a SMTer subscriber that had no business buying leap calls in SLV a few years back. Needless to say, the trade went against everyone and the hit nearly desimated my account(s) value. Because If my inexperience and unwillingness to take losses quickly when the trade went against me I set myself back 2-3 years. Like it or not, the long-term trend of metals and miners is down and the commodity super cycle was/is predicated on the expansion of debt which is at its limits. Without central bank intervention all of these “assets” would find their true economic prices and they’d be 75% lower than their current prices. I booked profits on my NUGT this morning… It took a long time for me to realize that everything is a trade in this sector… Not an investment! ✌️

          1. Jorgy

            Simple Gary… Too much leverage and the position size was too big. Your subscribers don’t follow L you’re advice and like Muffin Top said, novice investors are trying to turn a 40% rally into a 400% gain. No worries about the losses, I’m a big boy and better investor because of them. We learn more by failing, I took my lumps and have moved on. The only reason I commented was the simple fact that I agreed with his comment. Nothing is a sure thing, nobody knows what comes next and you have to understand that novices will take your suggestions to an extreme or use excessive leverage.

  5. Anthonyo

    Gold could not even surpass the 1140 resistance last week even after the Fed FOMC boost.
    And it has turned down from 1140 ever since.
    Gold will not bottom until it dips below $1000 this year or by early next year if not this year.
    The deflationary pressures are gathering steam still.

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