Gold Is Gleaming Brighter On the Breakout
Earlier this week the precious metals complex achieved a breakout. Today, (Friday) we are seeing upside follow through in the gold shares. Follow through validates the breakout. Also, as we’ve noted on our charts, the gold shares are performing well against Gold. We like to see the shares exhibiting superior strength.
GDXJ (NYSE:GDXJ) the ETF for junior gold miners is pushing higher by 2.7% today. Our target for the breakout is $49.
Meanwhile, the large cap gold shares, which have underperformed are up a solid 2.5%. Today appears likely to be a new closing all time high. Our upside target for GDX (NYSE:GDX) is $71.
One of the most difficult things is to hold through a bull market. Legendary speculator Jesse Livermore said it was never his thinking that made him money but his patience. With the recent blow ups in technology, housing and the financial sector, there will be even more contrarians around to denounce the bull market in precious metals. This bull market has years to run and will be one for the record books. Buy and hold your core position and do not think about it.
Another great read: Gold & Silver Premium Vastly Outperforms with 86.5% Return in 2010>>