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Tom Aspray, professional trader and analyst was originally trained as a biochemist but began using his computer expertise to analyze the financial markets in the early 1980s. Mr. Aspray has written widely on technical analysis and has given over 60 presentations around the world. Many of the... More
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  • Gold Miners Fail To Launch 1 comment
    May 14, 2014 2:11 PM | about stocks: GDX, GDXJ, GG, ABX, TLT

    In the face of booming stock prices and declining yields, there has been little interest in gold or the gold mining stocks. As I mentioned in April's Should You Invest in This Unloved Sector? The Philadelphia Gold & Silver Index (XAU) shows a seasonal tendency to form a short-term low in early May.

    There are no signs yet that the decline in yields is over, but I do not think this is a new "bond bull market." The widely followed iShares 20+ year Treasury Bond (TLT) peaked at 113.10 on May 2 and reached initial support at $110.54 on Monday before gapping higher on Wednesday. A move to new highs is a possibility with the monthly projected pivot resistance at $114.63.

    This could put even more pressure on the precious metals. As I discussed in yesterday's review of the Charts in Play portfolio, when one of your portfolio positions does not move as expected, often the best course is to close it out instead of waiting to be stopped out.

    A look at the weekly and daily technical outlook for the Market Vectors Gold Miners ETF (GDX), as well of its two largest holdings will reveal why I am changing my view.

    Editor's Note: Still having problems posting for the rest of the article go here

    Disclosure: I have no positions in any stocks mentioned, and no plans to initiate any positions within the next 72 hours.

    Stocks: GDX, GDXJ, GG, ABX, TLT
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  • retpdguy
    , contributor
    Comments (206) | Send Message
    Tom, do you recommend the inverse GDX or 3x inverse dust?
    14 May 2014, 04:40 PM Reply Like
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