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Financial news I consider important, with my opinion, which is worth as much as you paid for it.
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Saturday, March 29, 2014

Whats up with Gold and Miners?

As readers know, I have been bullish on gold miners since GDX hit 27 on the way down to 21, and around 21-22, I loaded up on gold miners.

Recently when GDX hit 28 going back up, it topped and toppled quite hard down into this past Friday.

Gary of the Smart Money Tracker is pretty bearish, on the gold mining sector.
To Gary's credit, he keeps nimble and will change in an instant once there is momentum to the contrary to prove his view wrong.  Until proven wrong, Gary is bearish.  Gary has been more right than wrong the last few months, so I do give his opinion weight.

Tim Knight of the Slope of Hope is actually turning bullish.  Tim bought GDX with  a stop of $22.70.  Meaning if GDX violates that level down he will exit his position.   I put a video below to see his opinion on recent miner analysis below.

Also my friend and life-long day-trader Happy John is hanging in there, sticking to miners.

Me? I am concerned, not just because Gary says so, but yes Gary's weight does influence me.  I am concerned because out of a bottom I would have expected miners to be stronger.  The fact they haven't held up with gains is a concern.  However, if oil price drops miners should shoot up like a rocket.  After all miners biggest expense is energy.

The readers out there need to hedge bets, lighten up if GDX pops up to be prepared if GDX is beaten down below 21 ahead of the beat down, to be ready for the final bottom.

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