Gold hit a 52 week high in trading yesterday, marking the first time since 2011 (5 long years ago). So what does this mean. For the gold miners…everything. They have reduced their cost bases down over the last few years, the cost of material and energy is cheaper, and gold is higher, and appears to have bottomed last December. That means gold miners profits go up, and therefore their share prices.
Note in the chart below in the top section the out performance of GLD vs SPX equities. Also note the SCTR reading of 98.5. This means as an asset class, its outperforming 98.5% of other assets and sectors, at this point in time. Note the price sitting just above support today. This is a very bullish chart folks.
Here is a concern of a new member, which I also want to address:
“Owned Golden Phoenix a few times myself. LOl. I have a question and I’m unsure how to ask Spock without putting him on the spot. Was curious if you guys had discussed the idea of the massive waterfall drops we saw in the miners several years ago. It was those treacherous drops that seemed to come out of nowhere to destroy my earnings. Do you know if his system will give us any warning? I can be tried but can’t afford to start over again. Maybe you can see if he could give us a little insight into how his system will respond. I am so tired of being tried and riding out these corrections. I have high hopes for our miners. I completely believe they will be the right place to be at some point. Just hard to give so much back.”
First of all, I would never recommend anybody to buy a company like Golden Phoenix. Only the best of the best gold and silver miners are used for trading, based on fundamental criteria including balance sheet strength, consistent earnings, strong management and good projects. Before considering a company, I speak with management, in order to help validate the company and its upside potential.
Secondly, I am professional market trader, and mining analyst, who has been trading the global financial markets across all asset classes for over 30 years. The focus is on the gold and silver mining sector, where extreme value propositions are now being identified, after a five year grinding bear market in the sector. It was the second worst bear market in the sector since 1869, 150 years. So we are buying near the lows here, not the highs where the herd get in.
Thirdly, I use an extra-day trading system which generates trading signals, either long, short or flat, after the market close each day. The trading signals are generated from a proprietary matrix of indicators over several time frames, which have been extensively back tested and validated in real trading over the last 12 months, to generate consistent profits. If a strong exit signal is generated in a company, it gets sold. If the sector in general is on a sell signal, I hedge.
In short, by following the Spock Miners Matrix you will be invested in only the crème de la crème of PM Miners. Some will be buy and hold. Some will be traded based on constantly changing matrix signals . A Hedging Strategy using HGD or DUST, both gold miner bear ETFs, may be employed periodically to protect the core positions, subject to the matrix trade signals. Capital preservation is the prime focus. Profits are the cream on the cake.
I trust this puts some minds at ease.
Trade well and prosper. Spock