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Yamana Gold, Inc. Message Board

  • hapiwondrer hapiwondrer Jan 30, 2014 1:17 AM Flag

    Gold stock panic

    The following article titled “Gold Stock Panic Ends” by Adam Hamilton on December 19, 2008 on the ZealLLC website is worth a read.

    See the article titled: “Gold Bull Seasonals 3” written on August 8, 2008 by Hamilton and ask yourself how you would have reacted back then. Hamilton does cite “seasonals” as a secondary consideration, but if your crystal ball is a bit fuzzy you are more likely to give greater weight to seasonals, of which there is no argument and Hamilton’s seasonal chart is likely to raise your confidence level.

    We may be entering a similar period if the stock market goes down much further. A H&S pattern has been ongoing since the early 90’s, but Yahoo no longer provides readable “Basic” DJIA charts going back that far unless you allow them to pry by enabling cookies for the “interactive chart”. Enable the log scale as a kind of inflation factor.

    We are in what looks to be the downward cusp of the “right shoulder”. If the McClellan Summation Index goes negative and extends the market much lower all shares could follow, including mining shares, as in 2008. This is based on the NYSE Composite index where the H&S formation is quite visible. This would be a good time to buy-in if the overall market plunges. Don’t be too confident in the prognostications of those pumping the very near term parabolic rise in the gold price from its current lethargy. Remember. It’s buy low and sell high if you wish to maximize your return.

    Hamilton’s most recent listing is “Gold Bottoming” dated 1/24/2014 in which he paints a very rosy scenario for what to expect for PM prices. But missing, like in 2008, is the effect that the plunge in stock indexes might have on the PM sector. It would seem that again a fear driven plunge in the stock indexes would effect all asset classes, including PMs providing an even better buying opportunity. Just how quickly can the current poor sentiment for the PM sector reverse itself if it falls in sympathy is the question?

 
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