Dog Days of Summer for Miners

Posted by Jordan Roy-Byrne - The Daily Gold

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What can we say? We are in the dog days of summer and precious metals miners remain in a consolidation. Last week was a down week but it occurred on lower volume and the stocks didn’t threaten support.

Here is a weekly chart of our top 40 index. Look at how the index is holding up at present and digesting the early summer gains, as compared to the end of last summer and earlier this year. The index hasn’t even retraced more than 38% of the move from 310 to 440. 


The evidence in my opinion is bullish until the market tells us otherwise. Commodities have corrected big, the US$ has rebounded strongly, the COTs are a concern yet gold and silver stocks have held in well. The mining indices haven’t even tested their 50% retracement and remain above their 200-day moving averages. Furthermore, 78% of the stocks in the HUI are trading above their 200-day moving averages. That figure was a bit higher a week ago but other than that its at the highest level since late 2009.

These reasons among others why I am positioned for a breakout. Sit tight and be right until the evidence changes.  

Here are the links for this past week…..

My Interview with Wall Street Window
This was recorded on Tuesday. Thoughts on precious metals, September, what I’m looking for as far as price action and thoughts on the manipulation meme. 

What’s Next for Precious Metals?
Great post from Tiho.   

Dan Norcini: Aggressive Hedge Fund Selling Plagues Silver
Dan shares his thoughts on Silver as well as his contempt for the kind of analysis that the permabulls provide. 

The Bearish Scenario for Gold & Silver
One can look at the bear analogs for Gold & Silver and make a case that the bear has more to go. I don’t agree with that, however, it is always important to keep all reasonable scenarios in mind. 

Argonaut Gold’s Maiden Resource for San Agustin is 1.28M oz Au-eq
I’m expecting San Agustin to become Argonaut’s next mine by late 2015. The Silver resource will provide a good kicker.

Balmoral Drills More High Grade Nickel
Balmoral has been one of the biggest early winners of this fledgling bull market and I think it can continue to move higher. It has two projects with strong takeover potential.  

Consider a subscription to our premium service as I believe we have one of the best services available. We are the only credentialed technical analyst who is the editor of a service. Secondly, we are one of only a few people who run a real money portfolio. That means our goals are 100% aligned with our subscribers. 

Thanks for reading. I wish you all great health and prosperity in 2014 and beyond. 


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