Thursday, August 10, 10:35 pm EST. Looking at this report. Is really interesting. I know the Big One is coming, if this launch isn’t it yet.
“If you’re among those who have been waiting to buy, we have some good news… We now have our first good chance to buy gold stocks in months.
Gold-stock investors are a stubborn bunch. Gold stocks started falling last August, and gold-stock investors kept buying all the way down. It took until April for them to finally give up on gold stocks and start selling.
The chart below tells the story. It shows the shares outstanding for the VanEck Vectors Gold Miners Fund (GDX)…
When the shares outstanding are rising, it typically means investor demand exceeds supply – in short, investors love gold stocks. And when this number is falling, it typically means investors are throwing in the towel.
In short, gold stocks are now “cheap” and “hated” again – two of three of our favorite investment criteria – for the first time since this bull market began. We’re waiting for a clear uptrend before making an official recommendation. Those who don’t want to wait around can take advantage of a low-risk opportunity today…
If you are determined to make a trade in gold stocks, I can suggest a low-risk, high-return trade for you to put on today. Take a look at this chart. It tells the story…
You can see GDX’s big fall in late 2016. But this year, something unusual has happened: Every time GDX has fallen to $21, it has recovered and bounced higher.
So your good trade “setup” today is to buy GDX, and use a hard stop of $21. If GDX CLOSES any day below $21, sell it the next day.
Your downside risk is about 5% from today’s levels. But your upside potential is many times that.