This is a pre-market peek at where we closed Gold and its GDX miners yesterday.
*
It appears that Gold and GDX are both due a bounce today.
*
Gold sports a short term RSI (5) reading that is oversold and has been a clue for recent bounces. Gold also is flirting with the lower Bollinger Band which, statistically, does not favor a further drop in price without at least some sideways or upward price movement.
*
Click on the chart to ENLARGE
This is the daily GDX chart. It also shows a couple of signs that a bounce is due. RSI (5) is oversold and price is near the lower Bollinger Band.
*
Click on the chart to ENLARGE
*
A little positive action in the first hour of trade should also give us a bullish ZERO line crossover.
*
Click on the chart to ENLARGE
![[Most Recent Quotes from www.kitco.com]](http://www.kitconet.com/images/quotes_special.gif)
I lost patient and sold on Tue! So I missed today's rise. Should I get back in now? What is the upside?
ReplyDeleteIt happens to all of us - we lose patience. The trick with gold and miners is to, generally speaking, never sell at a loss. I know this is difficult to believe, but it really is rather impossible to lose money with either investment UNLESS you lose patience and intentionally sell at a loss.
ReplyDeleteLet me briefly explain. Gold and miners are in a huge secular (long - term) bull market. That means that over time, gold and miners do only one thing. They go up. I know this so when I miss time a purchase and it immediately turns on me, I am not pleased, but the last thing I do is sell at a loss.
Have you looked at my trading record these past 8 weeks? 6 of those weeks gold went DOWN. But notice how few losing trades I accepted. I think 4... If I got under water I just sat there until I got above water.....and made money nearly every single time at that.
Forgive me if this sounds like a lecture or that I am bragging. I intend it as neither. I intend it as encouragement - encouragement to model for you how to think and how to make money! Please, if there is anything else I can do to encourage you, write me an email and we will work on it. OK?
Ps. Jump back in the water....you will be fine if you remember this one lesson.
Thanks for your advice. I am looking for an opportunity to get back in!
ReplyDeleteI got back in yesterday at 49.6. Got out at 50.6 today.
ReplyDeleteA modest gain. Thanks for your suggestion!