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Sunday, May 20, 2012

Decent Entry for Miners

Its no secret the market has taken a beating, and resource stocks have been brutalized.

Some like Gary are calling for a near term bottom in gold miners.  For me the jury is out.
There are many factors at play, and one of them is the Fed's reaction to the deflationary collapse that is gaining steam.

Assuming the Fed announces a new Quantitative easing "rebranded" announcement, gold may be poised for a nice leg up, along with it the Gold Miners.

If you haven't already, consider adding - yet again just a little - GDX at 41.50 range, and GDXJ at 18.50 range right now.  Put some stink bids in at 39 & 17, and see if we get a down-up day for a good price.

Make sure you have margin left over, for this rabbit hole could go much deeper.
I wouldn't buy anything else right here and now.  We could have a nice 2008 deflationary collapse again.
China's real estate is cracking so is Australia.
In a deflationary collapse gold miners and gold could repeat 2008.
Isn't this fun?   The bets are not on business cycle, but on what is the reaction of world banks.

I am selling some of the inverse funds, DXD and VIXY right here, and putting stops in.  Too much down too quick for not to take it off the table.

Good luck.

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