All I can say is that this extreme, historically extreme pessimism is what defines buying, not selling opportunities. Buy while there is blood in the streets! The juniors are bloody as Hell right now. While I am playing JNUG, I love DRD at this price level of $1.92. The PS is .44 and PB is .66. These are the levels that Conquer the Crash told us to look for. The company has 18mn cash and only 7mn debt. It even sports a small divvy which of course will skyrocket once gold gets above $1300.
Of course, the safe, non leverage way to play all of this is just to go with GDX or GDXJ. Go out and buy something golden for a long term hold folks. The rally is just getting started.
A break below $114 clearly negates the short term bullish view but the longer term bullish view remains intact even if GLD heads to Avi's target of $105.
Hello Captain,
ReplyDeleteWhat s your take on the miners lagging gold, my assumption was that they should lead gold, not lag.
We haven t seen new highs in GDX or GDXJ, juniors are actually behind GDX...
Thank you.
L.
Hi L. I think that a lot of the long standing relationships that have seemed to hold will not hold this time around. That's why I follow the wave count more than any other thing.
ReplyDeleteThe entire market place is in no man's land. The free markets have been distorted to something that nobody has ever seen before. Again, advantage to those using real time wave counts to guide entry and exit. The whole notion of "but it should be acting like this..." is out the window. It's OK to start off with that as an investment thesis but if the wave structure does not support such views it is not smart to just buy and hold.
Having said that, I think the wave structure supports a significant bottom for gold having just been put in and the miners will catch up to it soon enough. The capitulation selling volume on miners was quite telling. Still, GLD $105 is not off the table just yet.