On December 3, we said:
We've been saying it time and time again in this space and that is:
We sell trend channel resistance and buy trend channel support. That's been the whole trend with the indexes for months. So that said, let's really look at some gold stocks:
If you are buying here you are chasing it after the fact and late to the party. Let it pullback and come to you.
Ask your yourself are we closer to trend channel support or trend channel resistance? It's all you need to know.
Now you know why we say :
If you missed it? GOOD
If you are thinking of buying it? DON'T (or at least we won't till they hit trend channel support or a POH longside set up develops) CHASE THAT BUS.
If you are long gold and related expect a pulback which is normal.
For us? When these names mentioned above get back to trend channel support we'll be talking more about them with our subscribers. But not now.
Now let's take a look at those same stocks --
WOW, what a difference. As you can see where they were pushing resistance before, they are now all at support. This is why we don't buy into the emotional, news driven hype. We simply buy when the chart tells us to buy and sell when the chart tells us to sell, period. We don't chase buses, but instead let them come to us.
GLD went from 118.50 to 108.32 or about 10 points per share (-8.5%)
XAU went from 192.90 to 165.18 or about 27.72 points per share ( -14.3%)
GOLD went from 86.80 to 79.40 or about 7.40 points per share (-8.5%)
IAG went from 19.31 to 15.35 or about 3.96 points per share (-20%)
LIHR went from 33.65 to 27.53 or about 6.12 points per share (- 18%)
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Disclosure: Long IAG, SLV, SLW and LIHR