The Lemon Fool

Mr Hamilton explains all in his inimitable, wordy way
http://www.zealllc.com/2018/rcdgssht.htm
Could it get the gold/silver miners out of the doghouse?
GDX http://tinyurl.com/yavolrbf

It will take more than a 20% increase in my humble stakes in two gold mining shares to compensate for reading that lot and trying to understand it. And I see that they have both gone down again today.

My understanding is that the Commitments of Traders figures are not viewed as being particularly reliable as a market timing indicator. In any case, it all feels a bit falling knife-ish at the moment for precious metals equities, with GDX trading below its 5-day and 15-day moving averages.

It's interesting to see that the gold/silver ratio has moved higher and is now up to around 85, which looks like the highest level in a decade (as far back as my chart goes). IMV, silver would seem to have some serious potential upside asymmetry when this sector finds its feet again; for those with stout hearts, Fresnillo (FRES) is looking rather oversold, according to its RSI.

He's making the point that the gold miners are fundamentally sound even though their prices are at rock bottom
http://www.zealllc.com/c2018/Zeal081718A.gif
[img src = "http://www.zealllc.com/c2018/Zeal081718A.gif"]
http://www.zealllc.com/2018/gmq218fn.htm

The low share prices are due to a huge short position of the specs in the gold futures market & not that they are struggling to make a profit (earnings up 39% yoy)

The shorts will have to be covered eventually. This could happen gracefully or turbulently. There is the potential for a severe short squeeze. Suppose the $ were to drop precipitously?
$USD http://tinyurl.com/y9euu26g