Loading ...Next, is the darling of the gold perma bulls, the GDXJ. I find it hard not to be obnoxious at this point but I well remember, and I am sure most of the regular readers/poster here do as well, how we had to suffer through the crowing and cackling of those extolling the praises of the junior miners for 2014 as if somehow they were investing geniuses because at one point its gains were actually greater than those of the S&P 500 for the year. No matter that the index had collapsed from over 160 and was now trading with a paltry “3” handle in front of it. Nope, none of that mattered you see for they and they alone were the truly wise and savvy traders/investors who had recognized the “bargains” in the sector and were now gloating in their new found gains. One can only hope that some of them were actually a lot smarter than what can be deduced from their posts and that they actually managed to sell some of the useless things while they still had some meager gains left in them for the year.
I will have to beg the forbearance of my regular readers if have crossed the line and seem a bit too severe on them. After having to suffer through their annoying and arrogant boasting it is rather amusing to see them get their proper comeuppance in the markets. As said here many times, having learned my lessons severely in the school of hard knocks, there is nothing so fitting for a successful trader than humility. Boasters come and go. I have seen and known many of them over my career. Anyone can have an occasional good trade. Doing it year in and year out, over and over again, takes great skill and hard work with many long hours. The successful trade is a sort of reward in itself because you are in effect pitting yourself against others in the markets. Only one side is going to be right. The losing side ends up donating their money to the winners. That is just a hard, cold fact about a zero sum business.
When you lose money you either learn from it, become more humble, less reckless, less prone to boasting or you are soon a FORMER trader or FORMER investor.
One last chart for now ( I will get some stuff up later as I have a busy afternoon right now ). Gold
Look at the weekly chart and tell me if you can see the Triple Bottom. There is an old trader’s adage that double bottoms and double tops tend to hold but triple bottoms and triple tops do not. We are going to see very soon if this is validated this time around. I suspect gold will not hold but could be wrong.