I had the pleasure to be part of a year-end interview series on The Next Bull Market Move. Below is a reprint of the interview:
Hi Justin, welcome back to The Next Bull Market Move. It’s been a while since we last spoke and as it’s nearing the end of the year I thought it would be great to get your thoughts regarding the markets in 2017. Let’s start with Gold. It looks as though we are still consolidating since the run up we had last year and sentiment is looking bearish. How is Gold looking to you?
Gold is still moving sideways right on top of its 30-week moving average. The gold stocks are acting slightly weaker than gold if you take a look at GDX or GDXJ. They are both trading more below their 30-week moving average than gold.
Silver is also acting weaker than gold which typically isn’t a good sign. One thing I have noticed is how the volume has collapsed in GDX and GDXJ as this consolidation has dragged on. That can be a bullish sign as volatility and volume often collapse before a market moves higher, especially for a market that has been basing for a while like gold and gold stocks.
I’ve been out of gold and gold stocks all year and I don’t see any reason to be in them until we see them move above the 30-week moving average on increased volume in a new Stage 2 breakout. Until then I’ll keep monitoring the situation. Certainly we could see things change dramatically at any time.
Let’s move on to Uranium. Over the last few weeks it looks as though the sector wants to break out, your thoughts?
After the Cameco production cut announcement we’ve seen almost all the uranium stocks move above the 30-week moving average on increased volume. This includes Uranium Participation Corp. which tracks the price of uranium.
I like how the volume in that fund is actually heavier than it was during the breakout in uranium stocks we saw around the same time last year.
