Virtually all the Spock Miner Matrix signals are now on BUY signals, on a daily, weekly and monthly basis. This is an exceptional situation. I have not seen anything like this for a long, long time in one sector or asset class.
Markets trade mainly on sentiment, perceptions and emotions; the strongest of which are fear and greed. Fear is stronger than greed, as its a survival instinct hardwired into our brains. Fear is what drove the gold miners down to their lows last month, where a huge bear trap was created, after an 85% decline in the $HUI over 5 years. The bear trap was the bottom in the gold miners. Think of it as the final gasp before the bear went into hibernation.
Now fear is driving price in the OPPOSITE direction. Global uncertainty and crises are creating the fear. The precious metals are the recipient. Its now a fear trade. Do not be surprised if there is $100 move up in the gold price in one day, at some point. The gold and silver miners are the leveraged recipients of this fear trade.
Expect at least 100% triple digit move in the PM indexes for this first leg up, driven by fear, and the fact that the miners offer exceptional value, even now after a 60% move up in the PM indexes. Over the coming months, the moves should accelerate, after running corrections. Do not expect a significant pullback. Use pullbacks to add to long positions. Shorts are roadkill going forward, except for the professional day traders, who are experienced and know how to side step a freight train.
We, as extra-day investors and traders, are NOT naked shorting this market. Remember that! Forget DUST even exists.
Therefore, my initial targets in this first leg are around 200 for the $HUI and $1300 for $GOLD. There are Spock wave targets at these two price levels. Many of the small cap miners should at least double off their lows in this first leg. That’s where the Spock Miners are focused. That’s where the profits should be exceptional.
Spock took profits on the HGU.TO last Friday going into the close, in order to have cash available to enter new individual gold miner long positions next week. There are are several miners which have yet to make a major move, so I want to get into these next week, if possible. Will post details during the next morning trading session, after the markets have opened and settled down, if that’s possible! In total there are 11 new long positions I want to establish over the coming week or so. So expect me to be taking partial profits on existing positions, which have run hard, and using the proceeds to rotate into new stocks.
This is a marathon, not a sprint, so one step at a time.
The vision and strategy is to have around 25 to 30 long PM miner positions by the end of this month, with the fucus on the mid and small cap miners. I may decide to use the hedge money by adding to longs (Texas hedge) as the technical picture is exceptional, and want to maximize exposure to it. Some might think this is adding to risk, but actually its not, as the portfolio is up nearly $45,000 in under 3weeks, so there is a big buffer there now.
Greed is good, when the fear is palpable. Spock is feeding off the fear in the markets. The big picture is showing we have an exceptional opportunity here. Most cannot see it.
Trade well and prosper. Spock. 🙂
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