A subscriber requested a view of GDX, similar to the earlier one of GDXJ.
Again, the chart is self-explanatory. GDX is not quite as over bought as GDXJ, but it is over bought.
Also, note the updated chart from the SLW projection that was done on Tuesday, Feb. 11 (not last week as stated in the prev. update).
SLW has come close to its target.
Also, to review we had a short term measurement in gold (noted in NFTRH 277) of 1340 and now silver, with its burst upward, gives a measurement of around 22.
The precious metals are getting up into potential reaction territory. Here we reference the Sentimentrader data, which was at 90% yesterday and is probably 100% today. The ‘bugz’ are feeling good and that often leads to unpleasantness in the form of negative reactions.
It might be a good time for us to review as individuals “am I a trader or an investor?” and stick to whatever the answer is with conviction. These types of moves can put an investor out of action as the move keeps climbing. Conversely, if a trader decides to hold to skim more profits, a reversal could end that story unhappily.
So please precious metals players, know who you are. I am actually trying to figure out who I am. Probably a combination of profit taker, investor and hedger.
But if things work well, the main focus would be on new buying opportunities on pullbacks, because as noted earlier the sector is making some very good signs in a bigger picture macro sense and technically a new uptrend appears to be taking hold.
With this update, I’ll call it a week (as far as updates go) and see you Sunday with NFTRH 278.