Another day, another decline in juniorminers – and another increase in profits from short positions in them.Shouldn’t we expect a rebound though?
Well, no. The rebound already happened inlate July and early August, and what we see now is the trend being resumed.Consequently, even if it wasn’t for all the long-term analogies to the2012-2013 declines in gold and goldstocks (HUI Index), one should expect the current short-term decline to be significantlybigger than the counter-trend upswing which ended earlier this month. At thistime, the move lower is just somewhat bigger than the preceding rally. Thus,it’s not excessive and can easily continue.
However, let’s keep in mind that periodsof very high volatility usually need to be followed by periods of relativelylow volatility. That’s when investors verify if the “new reality” – the pricelevels after the decline – are justified or not. If the market votes “no”, weget huge rebounds and breakdowns’ invalidations. So far this week, the markets have been voting “yes”.
So, while the USD Index and the precious metalsmarket might consolidate for a few days (or even up to two weeks), they arelikely to continue their most recent sizable moves shortly thereafter.Consequently, while I can’t make any promises with regard to the performance ofany asset, it seems that the profits on the short positions in junior minersare going to increase substantially in the coming weeks.
Thank you for reading our free analysistoday. Please note that the above is just a small fraction of today’sall-encompassing Gold & Silver Trading Alert. The latter includes multiplepremium details such as the targets for gold and mining stocks that could be reached in the next few weeks. If you’dlike to read those premium details, we have good news for you. As soon as yousign up for our free gold newsletter, you’ll get a free 7-day no-obligationtrial access to our premium Gold & Silver Trading Alerts. It’s really free– sign up today.
Thank you.
Przemyslaw Radomski, CFA
Founder, Editor-in-chief
Toolsfor Effective Gold & Silver Investments - SunshineProfits.com
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Disclaimer
All essays, research and information found aboverepresent analyses and opinions of Przemyslaw Radomski, CFA and SunshineProfits' associates only. As such, it may prove wrong and be a subject tochange without notice. Opinions and analyses were based on data available toauthors of respective essays at the time of writing. Although the informationprovided above is based on careful research and sources that are believed to beaccurate, Przemyslaw Radomski, CFA and his associates do not guarantee theaccuracy or thoroughness of the data or information reported. The opinionspublished above are neither an offer nor a recommendation to purchase or sell anysecurities. Mr. Radomski is not a Registered Securities Advisor. By readingPrzemyslaw Radomski's, CFA reports you fully agree that he will not be heldresponsible or liable for any decisions you make regarding any informationprovided in these reports. Investing, trading and speculation in any financialmarkets may involve high risk of loss. Przemyslaw Radomski, CFA, SunshineProfits' employees and affiliates as well as members of their families may havea short or long position in any securities, including those mentioned in any ofthe reports or essays, and may make additional purchases and/or sales of thosesecurities without notice.
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