It's time!
If my computer trading system is credible, then today's price action in the precious metals mining stocks is exceptional and noteworthy. Daily chart double buy signals were triggered in the following gold and silver stocks: ABX, AEM, AU, GDXJ, GG, and PAAS. The daily chart double buy signal is one of the most powerful signals in my system.
For those who are reading my column for the first time, I've never been a "trend is your friend" trader or investor. In fact, most of my research is dedicated to the finding tradable tops and bottoms in the financial markets. The search engine within my computer trading system attempts to identify potential major turning points in stocks, bonds, indexes, and popular ETF's. I designed this search engine using 35 years of actual trading experience and dedicated research as my guide.
In the interest of full disclosure, my allocation to precious metals (PM) mining stocks is substantial right now in all my managed accounts. I was short the Russell 2000 Index against my mining shares, but I covered my entire short Russell position yesterday morning. Based upon everything I know about gold, the Dollar, U.S. stocks, and global financial markets, being unhedged long in the most hated asset class in the world right now (gold) is the right move. And my computer trading system is now screaming "BUY" the PM mining shares in the loudest of terms!
In my last column written a few days ago, I mentioned that one of the potential catalysts for a potential rebound in gold/silver prices might be a successful central bank effort to support China's stock market after its recent severe shakeout. The PBOC appears to be pulling out all stops in this effort now, and yesterday's rebound in Chinese stock prices looks promising. Of course, all that newly printed Yuan won't just go to buy stocks! Gold will be a big winner as well !!
According to the U.S. Mint (www.usmint.gov), July sales of gold and silver coins to collectors are approaching a record for a single month. For gold, 164,500 ounces of gold eagles have been sold. While the record at 209,500 ounces sold in April 2013 will probably not be broken, July 2015 sales with be the second largest ever. For silver, 5.33 million ounces of silver eagles have been sold so far in July. The total for the month is likely to place July in the top 5 months of all time.
According to the U.S. Mint (www.usmint.gov), July sales of gold and silver coins to collectors are approaching a record for a single month. For gold, 164,500 ounces of gold eagles have been sold. While the record at 209,500 ounces sold in April 2013 will probably not be broken, July 2015 sales with be the second largest ever. For silver, 5.33 million ounces of silver eagles have been sold so far in July. The total for the month is likely to place July in the top 5 months of all time.
As mentioned in previous columns over the last week, I now strongly believe that the selling climax in gold, silver, and related precious metals mining stocks has run its course and that a major bull market in this sector has just begun. The gold/silver long trade, especially in the miners, has all the potential to be the single best trade from here through the rest of the year!
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| Barrick Gold (ABX) Monthly Chart with Computer-generated Buy & Sell Signals |
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