iBankCoin
18 years in Wall Street, left after finding out it was all horseshit. Founder/ Master and Commander: iBankCoin, finance news and commentary from the future.
Joined Nov 10, 2007
23,417 Blog Posts

Gold Stocks Are Most Oversold Since 2009

I created Exodus in 2008 to analyze and test key levels for over 4,000 stocks and 200 industries. Ever since our algorithms have been running, the gold mining sector has never been this oversold.

Observe our hybrid oscillator, which tracks both technicals and fundamentals of every stock in the gold sector, which then determines if said level is at a critical stress point.

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Here is that same oscillator, but over the past year.

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Today is Fed day. Expect the Fed to raise rates and offer a slightly hawkish outlook. Anything short of hawkish will spur an immense rally in gold. Taking into consideration the 18% median drop in gold miners over the past 3 months, I think they’re well worth the risk here and would be buying them hand over fist, had I not already owned a bunch.

I am long $GLD, $AUY, $ABX and $AU.

Also, and this is worth noting, gold has performed exactly how it always does during the Fall — trade lower. Based upon Exodus‘ seasonality engines, heading into the winter months may prove to be a wellspring for the maligned sector — a counter reaction to the recent surge in risk on assets.

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4 comments

  1. juice

    what’s with this finance talk!?

    I come here for clarifying political analysis

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  2. peso trader

    And if Fed even mentions “dollar strength” today …fireworks for gold/silver

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  3. sethster99

    The war on cash includes gold. Gold is oversold and will continue to sell off. If you want an asset to hold cash in that will give you a return, then buy bitcoin.

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  4. Po Pimp

    Looks like it’s going to get oversolder.

    Gold miners will go the way of coal miners… el busto.

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