Wednesday, August 15, 2007

Gold Stocks Will Prevail in the Long Run

Over the last week, I have posted evidence suggesting that gold stocks have bottomed out. Despite my best efforts, my posts have turned out to be incorrect, and I have lost money because of this. Nonetheless, I still feel that it would be imprudent to sell at this time.

Here is a chart of GDX, the gold stocks ETF:




The main thing is to keep calm, and to continue to look at the charts objectively. One aspect I'm interested in seeing is how the weekly charts finish off this week. I'll be looking to see if the Euro holds the support line I was talking about. This test will be key. I'll have a longer post once the week finishes up. Best of luck.

4 comments:

Anonymous said...

GDX violated some key support today. I love gold and gold stocks for the long term, but technically GDX looks really weak right now. If the market as a whole continues down this waterfall, GDX will be pulled down with it, at least during the short term.

Danny Merkel said...

Dear Sir,

It does look like you were right. I got stopped out on the open this morning. Things are looking really bad right now. Best of luck to you all.

Anonymous said...

Hi.

On the SP/TSX Global Gold Index ($SPTGD), long term, weekly, do you think an new support level has developed at 240?


http://stockcharts.com/h-sc/ui?s=$SPTGD&p=W&yr=6&mn=0&dy=0&id=p86021813164&a=114816408

Danny Merkel said...

Hi there,

Thanks for the great question. I will make a post to answer this question tomorrow.