Advertise | Bookmark | Contact Us | E-Mail List |  | Update Page | 

Commentary : Gold Review : Markets : News Wire : Quotes : Silver : Stocks - Main Page >> News >> Story  Disclaimer 
Latest Headlines

Gold Seeker Closing Report: Gold and Silver Edge Lower While Stocks Rise on Trade Talk
By: Chris Mullen, Gold Seeker Report

Ira Epstein's Metals Video 1 17 2019
By: Ira Epstein

Debt, Division, Dysfunction, and the March to National Bankruptcy
By: Stefan Gleason

Stock Market Volatility Reflects Systemic Instability
By: Dave Kranzler

Wyoming Legislators Want State to De-Risk Investments by Holding Gold and Silver
By: Jp Cortez

Merk Research - U.S. Equity Markets
By: Merk Research

Federal Reserve Confesses Sole Responsibility for All Recessions
By: David Haggith

No for Brexit Deal, Yes for May. And What for Gold?
By: Arkadiusz Sieron

Beware! These Guys Are Good...
By: Rick Ackerman

Political Turmoil in UK and US Sees Gold Hit 2 Week High
By: GoldCore


GoldSeek Web

Gold Stocks Pause, But Not For Long

 -- Published: Tuesday, 21 January 2014 | Print  | Disqus 

Graceland Updates

By Stewart Thomson


  1. Most junior gold and silver stocks have taken a horrific beating over the past few years, even while gold prices have remained relatively elevated.
  2. Bank analysts suggest that high mine costs are largely to blame for this sell-off.  
  3. Recently, naked shorting seems to have diminished.  Gold stocks have rallied very strongly over the past month, on enormous volume.
  4. Can the rally continue, and is it related to lower mining costs?  In the short term, there’s no question that gold and gold stocks are technically overbought.
  5. Please click here now.  Note the position of my stokeilllator (14,7,7 Stochastics series) on this daily gold chart.  After reaching about 90, the lead line is rolling over. 
  6. It could be said that this key oscillator has a nosebleed, from altitude sickness. 
  7. So, light trading profits in gold and related items should be booked by aggressive investors now.
  8. In the bigger picture, a rise above the light blue trend line in the $1270 area could attract strong technical buying, initiating a very powerful move to the upside.
  9. From a fundamental perspective, the cost of energy is very important to mining companies.  Lower mine costs, combined with a relatively stable gold price, mean more profits for mining companies.  Larger profits can attract very strong institutional buying of high quality gold shares.
  10. Please click here now.  This interesting weekly chart compares GDXJ to oil.  The 14,3,3 Stochastics and RSI oscillators are both very bullish, and volume is powerful.
  11. Against oil prices, junior gold stocks appear to have broken out to the upside.  A short term pullback after such a strong breakout is to be expected, followed by a much bigger rally.
  12. I’ve compared the recent price performance of junior gold stocks to heavyweight boxer George Foreman, because they are crushing every other asset in their path. 
  13. Please click here now.  This daily chart shows that over the past month, GDXJ has gained about 25% against the Dow. 
  14. It’s now running into some overhead HSR (horizontal support and resistance).  I’ve marked that in red colour on the chart.  After such a powerful move to the upside, a brief pause is perfectly normal.
  15. The “health” of an intermediate trend rally is maintained by the occurrence of regular minor trend sell-offs.  If that doesn’t happen, a much more painful sell-off often ensues.
  16. Many investors sold gold stocks for a “tax write-off” in December, and some of them bought the Dow with the proceeds of that transaction.  I think investors should sell gold stocks at a profit, not a loss, and I wouldn’t buy the Dow with any of those profits.
  17. As 2014 progresses, the Fed will probably taper more aggressively, because money supply velocity (via M1V and M2V) is likely to accelerate, catching the Fed by surprise. 
  18. That accelerated taper is likely to cause the economy to slow a bit, weighing on energy prices.
  19. Institutional money managers would then be quite likely to move funds from the Dow into gold stocks.
  20. Yesterday was a US holiday, and stock markets were closed.  The Toronto market was open, and gold stocks had a good day of trading. 
  21. Please click here now.  Double-click to enlarge.  This daily ZJG.TO chart (Bank of Montreal junior gold stocks ETF) is the Canadian version of GDXJ.  Investors in Canadian gold stocks should book light trading profits, but be open to the possibility that a much bigger rally will follow any pullback.
  22. The US markets are all open again today.  Where should US junior gold stock investors look to re-enter the market, using the GDXJ chart? 
  23. For the likely answer, please click here now.  On this two hour bars chart, I’ve highlighted three key re-buy price zones.  Gamblers could buy in the $34.99 area, with an optional stoploss order placed under the minor trend low at $33.20.  I don’t use stoplosses, and I’m not a big gambler, but I will lightly buy that $34.99 area. 
  24. On any potential pullback for junior gold stocks, the buy-side HSR at $33.40 is what should be the “meat and potatoes” buy zone.  It’s where junior gold stock investors may want to re-buy GDXJ, and their favourite individual stocks, with a bit more size! 

Special Offer For Website Readers:  Please send me an Email to and I’ll send you my free “Cameco & Barrick Parade Leaders!”  report.  Both Cameco and Barrick may be key leading indicators of what is coming for junior uranium and precious metal stocks.  I’ll show you why that is, and which juniors may be poised to lead phase two of the gold stocks rally! 






Stewart Thomson 

Graceland Updates


Note: We are privacy oriented.  We accept cheques.  And credit cards thru PayPal only on our website.  For your protection.  We don’t see your credit card information.  Only PayPal does.  They pay us.  Minus their fee.  PayPal is a highly reputable company.  Owned by Ebay.  With about 160 million accounts worldwide.  


Written between 4am-7am.  5-6 issues per week.  Emailed at aprox 9am daily.





Rate Sheet (us funds):

Lifetime: $799

2yr:  $269  (over 500 issues)

1yr:  $169  (over 250 issues)

6 mths: $99 (over 125 issues)


To pay by cheque, make cheque payable to “Stewart Thomson”  

Mail to:

Stewart Thomson / 1276 Lakeview Drive / Oakville, Ontario L6H 2M8 Canada


Stewart Thomson is a retired Merrill Lynch broker. Stewart writes the Graceland Updates daily between 4am-7am. They are sent out around 8am-9am. The newsletter is attractively priced and the format is a unique numbered point form.  Giving clarity of each point and saving valuable reading time.


Risks, Disclaimers, Legal

Stewart Thomson is no longer an investment advisor. The information provided by Stewart and Graceland Updates is for general information purposes only. Before taking any action on any investment, it is imperative that you consult with multiple properly licensed, experienced and qualifed investment advisors and get numerous opinions before taking any action. Your minimum risk on any investment in the world is: 100% loss of all your money. You may be taking or preparing to take leveraged positions in investments and not know it, exposing yourself to unlimited risks. This is highly concerning if you are an investor in any derivatives products. There is an approx $700 trillion OTC Derivatives Iceberg with a tiny portion written off officially. The bottom line:  

Are You Prepared?

| Digg This Article
 -- Published: Tuesday, 21 January 2014 | E-Mail  | Print  | Source:

comments powered by Disqus


Increase Text SizeDecrease Text SizeE-mail Link of Current PagePrinter Friendly PageReturn to >> Story

E-mail Page  | Print  | Disclaimer 

© 1995 - 2019 Supports

©, Gold Seek LLC

The content on this site is protected by U.S. and international copyright laws and is the property of and/or the providers of the content under license. By "content" we mean any information, mode of expression, or other materials and services found on This includes editorials, news, our writings, graphics, and any and all other features found on the site. Please contact us for any further information.

Live GoldSeek Visitor Map | Disclaimer


The views contained here may not represent the views of, Gold Seek LLC, its affiliates or advertisers., Gold Seek LLC makes no representation, warranty or guarantee as to the accuracy or completeness of the information (including news, editorials, prices, statistics, analyses and the like) provided through its service. Any copying, reproduction and/or redistribution of any of the documents, data, content or materials contained on or within this website, without the express written consent of, Gold Seek LLC, is strictly prohibited. In no event shall, Gold Seek LLC or its affiliates be liable to any person for any decision made or action taken in reliance upon the information provided herein.