Interview with Palisade Radio
Jordan Roy-Byrne appeared on Palisade Radio on January 16, 2014 and called the bottom in the precious metals sector, specifically in the mining stocks. Almost six months later, and the GDXJ has just formed a higher low. It appears that Jordan was spot on. We find out what Jordan’s outlook is on the market moving forward…
Jordan points out that this upcoming Monday marks the end of the quarter and the close of the month. Technical analysts use these type of events to analyze how sectors will perform moving forward. Looking at the quarterly and monthly charts, Jordan sees a tremendous amount of strength in prices of the mining stocks. Additionally, volumes have moved up significantly. If the GDXJ has a very strong Monday, it could end the quarter at a ten month high.
The implications of the charts show Jordan that investors are holding on to their positions much longer than in previous months. He believes that this will lead to a sustainable and substantial rise.
With the stocks leading the metals, is Jordan concerned about the prices of gold and silver? Jordan takes a historical perspective and points out that gold’s bear market has not been overly extreme. Silver and the mining stocks are down significantly, but gold is only off about 35%. A couple months ago, this analysis led Jordan to believe in further downside for the gold price. Today, Jordan no longer believes that a newer low in gold is in the cards, however, he will not totally rule it out.
Jordan explains that the stocks are leading and will tell the tale moving forward. If the stocks start showing a lot of strength, Jordan states that it will indicate an imminent move in gold.
A few weeks ago, Jordan had a short position on the GDXJ in his model portfolio. Over the past couple weeks, he has exited all short positions and now holds over 80% of his portfolio in long positions.
Finally, we ask Jordan to pull out his crystal ball… Considering the three and a half year downturn and bottoming process, as well as the fundamentals in place for precious metals, how long will this bull market in the mining stocks go on? Jordan states that this new bull market in mining stocks will last at least four years and maybe up until 2020! He cautions that sharp corrections are likely in store along the way up, but Jordan suggests not worrying about these dips.
Jordan Roy-Byrne, CMT is a Chartered Market Technician and member of the Market Technicians Association. He is the publisher and editor of TheDailyGold.com, a publication which emphasizes market timing and stock selection for the sophisticated investor.