Chart of the Day – Miners
This is how it always is during corrections in a bull market. Traders get lost in the short term gyrations and forget to look at the big picture. Everyone is panicking like something significant is happening. There is nothing broken about this chart. Price is holding well above the rising 200 DMA and the bear market trend line is clearly broken. Price is making higher intermediate highs. This is a bull market. In bull markets corrections end and price goes on to make higher highs, and more higher highs, and then even more higher highs. Within 12-18 months I predict the HUI will be testing the all-time highs.
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You are the lone bull right now Gary. Every anaylyst and site I follow is short term bearish on PM’s and especially miners . All are predicting the low to come in October. Is it possible that they will all be correct and get in at the bottom of this correction?
About 90% of the time when I’m on the other side of everyone else they end up being wrong. When everyone is thinking the same thing, then no one is thinking.
Right. We will now for sure by 2 p.m. on Wednesday, Sept 21. Worthy of note: huge green volume bars on many juniors, some of which are already starting a nascent uptrend. No need for anxiety, keep alert and buy on the way up and take the middle. Works every time.
I think the same thinking applies to the base metals as well.
1. There is a call for a globally coordinated fiscal policy response to the economic slowdown. The idea is for a global infrastructure build out. Canada has already laid out plans. China is working on the silk road and other countries are putting forth their own plans.
2. Inflationary forces are building and in this scenario tangible/hard assets do well.
3. The Fourth Industrial Revolution is starting. The age of Coal/Steam power, The age of Petroleum, The Nuclear age, and now the age of renewable energy. Each transition takes large amounts of building materials to make the transition. Think of the tremendous demand side growth that this revolution will require in the next 20 years. A baby bull market has begun and don’t focus on the current story of warehouses full of this that and the other……. cast your vision forwards.
Everytime we went through the transition from one period to another there were great upheavals in the economy and people’s lives. So get ready for big changes coming in our brave new world.
Gold, Silver, gold mining stocks and silver mining stocks could rally Monday, Tuesday into Wednesday knowing the Fed will not raise rates.
This could catch alot of people napping waiting on 2:00pm Wednesday because the train will have already left the station.