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Russell 2000 ETF (weekly chart) has taken out the 2022 lows. Looks like game on.

This index is also not market cap weighted. So no tricks.

IWM_2023-10-27_13-48-05.png
 
Gold (& silver) seem to be catching a bid at the moment...
 
GDX is severely underperforming... I'll leave you to come up with the why.

GLD first line is about 188.25 and coming up fast.
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Approx 30-40% undervalued to where GLD is right now.

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Well not necessarily but I think it matters, a lot. If you really think that the miners are underperforming because its not a real gold rally that will soon fail, then you'd sell gold.

But perhaps they are underperforming just because sentiment is just terrible. Everyone sees the past little history and projects that into the near future. Ok, that means you are getting a good deal but it will take time to get rid of the negativity.

Or, and this seems more likely. The DS have amped up their manipulations, creating more fake shares and surprising the prices even more. This will create a huge potential force to create a very fast snap back (sling-shot) like rally.
 
Voodoo said:
Well not necessarily but I think it matters, a lot. If you really think that the miners are underperforming because its not a real gold rally that will soon fail, then you'd sell gold.

But perhaps they are underperforming just because sentiment is just terrible. Everyone sees the past little history and projects that into the near future. Ok, that means you are getting a good deal but it will take time to get rid of the negativity.

Or, and this seems more likely. The DS have amped up their manipulations, creating more fake shares and surprising the prices even more. This will create a huge potential force to create a very fast snap back (sling-shot) like rally.
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You think they care that much about an illiquid market like the miners? They got bigger fish to fry. But it's easy to sell this one is a 50 bagger in waiting. Like $200 Silver.
 
Lancers32 said:
You think they care that much about an illiquid market like the miners? They got bigger fish to fry. But it's easy to sell this one is a 50 bagger in waiting. Like $200 Silver.
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There's a Lot more liquidity in some of these small miners than many of the so-called big stocks. Just try to trade options in some of these large companies but they have almost no options money. The prices of everything have been frelled by the algo's.
 
Not saying there's no hope here. Good closes Gold over 2k for whatever the reason miners already beaten down. Odds have been worse for the long side no doubt.
 
It's been tough. Usually when the metals are going up or at least holding the miners follow suit. But so much lately. I held my nose and bought some of the Silver miners after the close. Not bad prices but certainly well off today's lows. We violate today's lows next week well then it sucks to be me.
 
jelly said:
EXK new 52 week lows. Silver sucks.
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Once Terronera comes on-line q4 next year things should improve greatly. They took on a lot of debt to make this happen but the balance sheet can handle it. Thats with lower silver prices as well. Prices will go higher in the coming years and when terronera comes online they say their production costs will be greatly reduced. I think they are also using their own cash on this project but once operational the new mine should provide another 55 mil a year in cashflow at todays prices.

IIRC they also have another large silver project right behind this one that has some promising history. I thought they already started drilling it but I could be mistaken.

As a long term bagholder in this, I mean shareholder, I just keep buying more and lowering my cost. Eventually this will pop higher and I can turn a profit and get out.
 
Gold looking very strong here. MACD also flashing a buy signal. As I mentioned before, nice cup and handle. Handle still within a channel but right at the top of it. If we close above the 2030 level we should make a run for the old highs. I'm just speculating on what will happen next but that seems like the most likely scenario if we have the end of year rally like we normally do. The other possibility is we turn around from here but stay within the channel and keep extending that handle. I just think there's to much shit going on in the world for that to happen.
Screen Shot 2023-10-28 at 9.22.16 AM.png
 
Also of interest is the last 4 candles on the weekly DXY have been flat or down a bit and at the same time gold have been powering higher. Is gold anticipating an end to the rise in rates and the dollar? Next weeks candle may tell the story.
 
...
At the same time, McIntyre also noted that along with the Fed's aggressive rate hikes, it has reduced its balance sheet, significantly reducing M2 money supply, the amount of money held by the public.

"Because the supply of money is decreasing, asset values are inherently decreasing. You now need more assets to support your credit requirements at higher levels. This is the last thing you absolutely want because it can quickly spiral out of control," he said. "I think this is why investors are turning to gold because they see a stable asset. There is only one safe-haven asset out there if you don't just want U.S. government bonds: that is gold."
...
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www.kitco.com

Gold continues to shine as rising debt could cause bond yields to become unanchored - Sprott's McIntyre

Kitco News' general-interest stories takes a look at what is making headlines in the marketplace and how that is impacting precious metals prices
www.kitco.com
 
Voodoo said:
They just started like a month or two ago... Except for our already discussed poor, poor mining stocks.
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VooDoo, something about your post keeps ringing in my brain. Have we seen capitulation in the miners? I haven't researched the volumes traded yet but until we see no buying and panic selling, I don't believe the bottom is in.
Those that cost-average in are presenting enough demand to stabilize these stocks. I'm guess-timating there's more downward pain to go.
 
I don't know when they take off... wish I did because I'd have a lot more of them right now (being rich and all). However, they are extremely undervalued and really hated right now. See the GDX:GLD chart above. 30-40% discount to gold already. You won't always get a capitulation type low. Those come at big turning points. But we have been in a bull market so I don't think we really need that type of low.
 
Market tries to leave as many people at home as possible when they do take off. If we are loosing lots of old-timers than I'm feeling better.
 
I bought a new position today. I look at it like this. The more metals move higher without dragging the miners with them, the more pressure builds under the miners. Eventually they will blast off.
 
The ongoing conflict between Israel and Hamas continues to prompt hedge funds to exit their short bets in the gold market, with some starting to take new bullish positions, according to the latest data from the Commodity Futures Trading Commission.
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More:

www.kitco.com

Geopolitical uncertainty continues to support short squeeze in gold

Kitco News' general-interest stories takes a look at what is making headlines in the marketplace and how that is impacting precious metals prices
www.kitco.com
 
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