Golden Cross bull signals have just been announced by a gold stock always-bull
Look, I said I was going to back off directly criticizing smaller promoters in the markets and in particular the gold
cult “community” (as it calls itself). But when a gold stock bull – through thick, thin and everything in between, touts the Golden Crosses that I’ve been noticing (and keeping really quiet about) in GDX, its fellow ETFs, indexes and individual gold mining stocks, I’ll make a post about it.
They have a right to write it, and I have a right to highlight it to this site’s readers. It’s like no promotion is a bad promotion when you’re harvesting eyeballs. Well yes, any promotion not grounded in hard reality or worse, that is grounded in TA lore and media sensationalism is bad.
I’ve made several posts about Golden (or Death) Cross touts ahead of time that went on to foil those who react to the hype way more often than not. Here is an example of a Death Cross that I critiqued in real time as not being bearish. It (NTR) then tacked on 20% upside before beginning the correction implied by the Cross a month or so later.
Often a Cross will eventually prove correct… after a pronounced move in the other direction, which happens much more often than not in my experience. Keep that in mind about gold stocks. The cross is positive but in sucking in the momos and TA robots, it will signal short-term risk. It’s like the machines are programmed to scan the media large and small, collect all those Golden and Death Cross references and then screw with the sheep.
So this is in keeping with a theme here at the public side of nftrh.com. A Golden Cross may or may not (and often does) precede a bullish outcome, but all too often a harsh move in the opposite direction comes about first. Let us not even mention the previous Golden Cross shown on the chart below that triggered with GDX about half way through its rally back in March and the eventual failure to new lows that followed. Duh.
So here is a daily chart of GDX, which I have not marked up* showing the SMA 50 crossing above the SMA 200. If you read the gold and anti-dollar websites you’ll come across the article. It’s titillating. However, titillation has no place in the mindset of a market manager.
* The chart is unmarked, but we have been using the same chart in NFTRH updates, marked up with all the parameters to be watching for. Upside and downside. I had been wondering how long before I’d see the Golden Cross show up prominently in the Goldbug-O-Sphere. Now I wonder no more.
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