Over the past few weeks I have alerted subscribers that gold was due a healthy pullback. On September 5th, 2011 I wrote,
"It’s been a long run for the bullion since my firm’s late January 2011 buy signal. Make no mistake, it will rise though, refreshed to make another run to higher highs. A brief retreat for gold bullion to long-term trend support would be of no surprise. Indeed, it may represent a healthy and necessary correction in what my firm views as the ongoing highway of the long secular rise. These thoughts should not be regarded as bearish analysis at all. Instead they are being presented as a technical and healthy possibility to eliminate current media-hyped precious metals euphoria and avoid buying gold bullion at an interim top."
Barron's quoted our Gold Stock Trades Premium Daily Bulletin today indicating a potential reversal after this post Fed, short term, volatile "twist".
The Market Vectors Gold Miners ETF (GDX) gained 4.6% on the day while its small-cap minded cousin the Junior Gold Miners (GDXJ) rose 5.2%. The Global X Silver Miners ETF (SIL) finished higher by 5%.
“Seasonality should play a factor here. Historically, bear markets end and bull markets begin in the fourth quarter. To those summer soldiers considering throwing in the towel, this may be a time for reconsideration,” noted Jeb Handwerger, editor of Gold Stock Trades.
To read the full article in Barron's click here.
Check out my recent interview discussing the recent selloff and one gold miner making major progress in mining friendly Nevada.