Friday, January 03, 2014

Generational Lows in for Mining Shares - Establish Long Term Positions Now or Soon

DEEP IN THE HEART OF TEXAS --  We are still mostly out of pocket and mostly out of touch, but when we return from our self-imposed hiatus later this month one of the topics we will be discussing is that we believe that mining shares have put in very, very long term, ... probably very technically important, ... probably generational lows.

That notion of ours is in part fueled by the charts shown immediately below, but we will of course have much more to say about them when the time comes.

Mining Shares vs Gold Metal

20140103 Mining Bear Over 3

Small Miners vs Larger Miners

20140103 Mining Bear Over 1

CDNX vs Gold

  20140103 Mining Bear Over 4

HUI/Gold Ratio at Extreme Lows

20140103 Mining Bear Over 2

Large Cap Miners  at Major Long Term Support

20140103 Mining Bear Over 5

What does this post mean? It means simply that the time for being short mining shares is almost certainly over. It also means that the time to begin building a long term long position using options and very little leverage at this stage - opportunistically - has arrived, and with little or no doubt now.

More later on this month or early next. Stay tuned.

 


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The Original
Vulture Speculator

Trading gold, silver and mining shares since 1980 with a focus on taking advantage of volatility extremes, Gene Arensberg analyses the markets through a basket of technical and fundamental indicators and shares his findings from time to time here at Got Gold Report. Mr. Arensberg has been quoted in the Wall Street Journal, Dow Jones MarketWatch, USA Today and dozens of other news organizations.

"I've been a huge fan of Gene and his amazing work for years..."

Brien Lundin, CEO, Jefferson Financial, Host of the annual New Orleans Investment Conference and Publisher of Gold Newsletter


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