Thursday, September 22, 2011
Not a Permabull
Watch out here if you are a Gold stock investor. I am not a permabull on Gold stocks, as I have learned my lessons well and studied history rigorously. If the market continues to melt down through October, which is what I expect, Gold stocks will get hit. Silver stocks will get hit even harder. And juniors will get hit harder than seniors in both sectors.
I warned about a dangerous neckline in the GDXJ ETF before. We are now at the neckline and threatening to break down below it after the obligatory dead cat bounce at the neckline:
If we get the breakdown and waterfall decline into the low 20s in GDXJ, it will be a fabulous buying opportunity for those with the cash to do so. In the mean time, I am bearish on Gold stocks and all other equities and have been warning my subscribers to avoid Gold stocks.