Still, the best bargain among the miners is Yamana Gold (AUY at the NYSE, YRI.TO in Toronto). At under 10 bucks, the zoomies are giving you a bargain. As the Hulbert Digest notes, sentiment is overwhelmingly negative. Bad news equals low prices. Buy the bad news, because gold itself, as measured by the August and December contracts, is in a roaring bull market. You buy the short-term dips when the longer-term metrics are still positive. Is this a lock? No. It is simply how you trade -- buy low, sell high. "Low" is negative sentiment and a short-term crash in price. "High" is euphoria.
This is a liquidation sell-off. Weak bulls are bailing. The August contract at the Comex is off by 30,000 contracts, over the last 5 trading days. The December contract is building, and now stands at 91,000+ contracts. The large speculator bulls still outnumber and outgun the large speculator bears by a margin of 3.5:1. If you don't believe that, then go to CFTC.GOV and check out the weekly COT report yourself. If/when gold goes into a bear market, the large speculator bulls will switch to the short side. Now, we are not even CLOSE to that dynamic.
You can mind-fuck the news (and trade with the suckers -- after all, EVERYBODY watches the news and everybody loses money...), or you can observe the facts. Liquidation sell-offs at the Comex are to be bought within the overall context of a long-term uptrend.
A good second choice would be Gold Corp (GG, NYSE), which has sold off into horizontal support at 40-42.
Buy the dips, and ignore the shit-slingers on CNBC. Otherwise, stay out.
Still, the best bargain among the miners is Yamana Gold (AUY at the NYSE, YRI.TO in Toronto). At under 10 bucks, the zoomies are giving you a bargain. As the Hulbert Digest notes, sentiment is overwhelmingly negative. Bad news equals low prices. Buy the bad news, because gold itself, as measured by the August and December contracts, is in a roaring bull market. You buy the short-term dips when the longer-term metrics are still positive. Is this a lock? No. It is simply how you trade -- buy low, sell high. "Low" is negative sentiment and a short-term crash in price. "High" is euphoria.
This is a liquidation sell-off. Weak bulls are bailing. The August contract at the Comex is off by 30,000 contracts, over the last 5 trading days. The December contract is building, and now stands at 91,000+ contracts. The large speculator bulls still outnumber and outgun the large speculator bears by a margin of 3.5:1. If you don't believe that, then go to CFTC.GOV and check out the weekly COT report yourself. If/when gold goes into a bear market, the large speculator bulls will switch to the short side. Now, we are not even CLOSE to that dynamic.
You can mind-fuck the news (and trade with the suckers -- after all, EVERYBODY watches the news and everybody loses money...), or you can observe the facts. Liquidation sell-offs at the Comex are to be bought within the overall context of a long-term uptrend.
A good second choice would be Gold Corp (GG, NYSE), which has sold off into horizontal support at 40-42.
Buy the dips, and ignore the shit-slingers on CNBC. Otherwise, stay out.