Get Ready for the Gold Bug Pump Apparatus to Fire Up

GDX breaks a trend line…

We have (NFTRH has) fully anticipated the short-term bullish move in the gold miners, and I have my holdings, including FNV as linked just below to participate in it. We even have upside targets plotted for HUI. Also, back on April Fools Day a public post about Franco Nevada’s leadership gave a good hint from a different perspective about where things might be headed.

Today GDX is breaking the downtrend channel! Sound the charge, follow the Buggish Generals you gold bug foot soldiers! Our time is finally at hand because… INFLATION!!! We will defeat the forces of EVIL!!!

Okay, calm down. A resumption of the reflation trades would not be a fundamental cause to rejoice about the gold miners. Treasury yields continue their ‘in the bag’ sentiment correction and that is gold/miner positive. But a firm economy at the instigation of inflation is not.

And aside from that fundamental stuff, we have technical targets yet to be reached (HUI) that will decide whether it’s ‘bounce only’ or something better. Right now it’s that first thing. It might be good to keep an eye on the Twitter touts for some contrary indicators going forward and keep your emotions out of that buggish dogma.

gdx

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