GDX

The Gold market is set to catch fire. Every desperate smack down in the Gold price by the bankstaz who are short more metal than they can deliver is needed only because there is so much buying pressure in the market and they know how out of hand the next bull run could get…..

We had great set ups and we added to positions.

The gold cycle (not shown) has turned up from the most oversold level since the 2008 crash.

In our previous essays we have covered the situation on the USD, gold and silver markets, but since there’s more to the precious metals sector than just these two metals, we have decided to supplement the previous analysis by covering the precious metals stocks…..

We had set ups this week and we added to positions.

We will also remove the hedge on our core positions if conditions are met next week.

As of Friday February 19th, gold is positioned in a rare setup that normally only comes along once or twice every 15-20 months……

We continue to hold our core positions, fully hedged. Waiting for a new uptrend to establish before taking on more positions…..

We typically cover longer-term ideas in DailyWealth. But we also know going against crowd behavior – and trading overbought/oversold extremes – is a great way to make money for folks with time to follow day-to-day movements…..

..gold has continued to rise inexorably. Each time it pulls back, the media give reasons why….

….Waiting for the downtrend since Dec to be broken and a new uptrend to establish before taking on more positions…

This post is a sample of our premium work. It comes from today’s premium update.

We track options data (put-call ratios) from the International Securities Exchange. Their options data provides a better contrary indicator than options data from the CBOE. Below is a chart of GDX along with the put-call ratio …..