I think I over compensate against my personal dislike of the gold sector’s various perma marketeers and promoters, not posting as much publicly about the sector as I do about US stocks, Treasury bonds/yields and maybe even global stocks and commodities.
But probably the most important and detailed segment in NFTRH has been the Precious Metals segment since we began getting constructive on the macro and sector fundamentals several months ago (while getting dissed by drive-by Twits: ref. A Notable Lack of Interest in Gold).
Back then the perma-promoters were of course bullish, as they had been all through the bear market. But aside from them it was “Gold Community Crickets” even as late as November 20th.
Anyway, this is a chart of gold stocks I own. All have been constructive and all broke bullish last Friday.
Meanwhile, I have also ventured (no pun intended w/ respect to a couple TSX-V lottery tickets/holes in the ground I hold) into a couple of producers that have fallen on hard times with a speculation that these pieces of crap can right their ships.
After highlighting NGD in NFTRH as a Q4 2018 ‘tax loss’ seasonal buy candidate (and failing to buy it myself before the first leg up) I finally waited it out and got a position (per the Trade Log) on what I’d hoped was a bull flag. It was, as the stock is a handy +20% from purchase in less than a week. Now, have they really fixed Rainy River? If so, I’d expect a gap fill from the July puke fest.
AKG was just added yesterday and like the one above, is no recommendation because these are chart specs and well, gold stocks (with a little hope that they can straighten out their operations).
This was another of the Q4 ‘tax loss’ specs noted in NFTRH that I failed to buy at the bottom. But the drop to the SMA 50 and the little pattern it’s formed had me thinking why not take a shot? So far so good.
Anyway, I am Mr. Cautious as usual compared to the more promotional entities in the sector. HUI has thick resistance not too far above beginning at our long-managed target of 170 +/- (Huey is currently at 164).
But this counter-cyclical sector is going to be informed by the macro around it… big time. Until that is resolved, the gold sector is still below notable resistance and some of its more important technical leading indicators have not yet triggered (but are moving in the right direction, short-term).
So ends my little public check-in on my beloved (and very under valued) counter-cyclical sector. Let’s touch base again sometime.
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