Gold Miners’ Aid & Mining Stocks

1. Gold Miners’ Aid & Mining
Stocks’ Performance

2. Points To Be Covered Today:
• Mining Stocks’ Performance
• GDX & GDXJ
• Junior Miners (The GDXJ ETF)
• USDX: More Sideways Trading Ahead?
• The USDX Index
• Gold Was Moving Back And Forth In A Boring Manner
• Gold Stock Investors' Favorite
• Gold Price & Chart

3. Mining Stocks’ Performance
• Mining stocks’ performance also supports this scenario.
• If it was the beginning of another sizable move higher in the
PMs and miners, the latter would be likely to show strength
before gold. And that’s not taking place.
• Senior gold miners were practically flat yesterday, just as gold
was – that is, only slightly higher.
• On the other hand, junior gold miners ended the session
slightly lower – very close to their previous 2021 lows.

4. GDX

5. GDXJ

6. Junior Miners (The GDXJ ETF)
• Junior miners (the GDXJ ETF) haven’t invalidated the breakdown
below the neck level of the bearish head and shoulders formation.
• Consequently, the very bearish implications of the breakdown
remain intact.
• All in all, the precious metals sector seems poised for another move
lower, quite likely to the previous yearly lows in the case of gold and
well below the previous 2021 lows in the case of the mining stocks.
• Yesterday’s decline in the USD index doesn’t change that. To clarify,
the above-mentioned targets will most likely be just interim stops
within an even bigger decline that will get us to the ultimate buying
opportunity for the PMs and miners later this year.

7. USDX: More Sideways Trading Ahead?
• The USDX reportedly invalidated its bullish H&S pattern
yesterday, but did it actually do so? The line based on daily
closing prices says otherwise.
• Yesterday’s (Jul. 27) supposedly big news was the breakdown
below the neck level of the inverse head-and-shoulders pattern
in the USD Index.
• Invalidations of breakouts are bearish, and what’s bearish for
the USDX is usually bullish for gold, silver, and mining stocks.
So, what happened? And what didn’t happen?

8. USDX: More Sideways Trading Ahead? - I

9. The USD Index
• What happened was that the USD Index moved a bit below the
declining neckline based on the previous intraday highs.
• What didn’t happen was the move below the declining neckline
based on the previous highs in terms of daily closing
prices (dashed line).
• So, was the breakout really invalidated? Not necessarily,
especially that the USDX is moving back up in today’s pre-
market trading (at least at the moment of writing these words).
• Moreover, while the USD Index moved lower yesterday, gold
refused to rally.

10. Gold Continuous Contract

11. Gold Was Moving Back And Forth In A Boring Manner
• To be precise, it did move higher, but only by $0.60, so it
generally ignored the USD’s movement.
• Consequently, yesterday’s session might have seemed to be a
game-changer at first sight, but it seems much more likely that it
wasn’t one.
• In my view, yesterday’s price movement was the continuation of
the back-and-forth trading that’s analogous to what we saw in
the first half of June.
• Gold was moving back and forth in a boring manner then too.
The boredom was over quite quickly and a big short-term slide
followed – I think the same is likely to happen shortly.

12. Gold Indicators

13. Gold Correlation

14. Best Tool For Precious Metals Correlation Analysis
• Displays the "big picture"
The Correlation Matrix shows the markets that influence gold, silver, gold
stocks and juniors.
• It gives you an advantage over most investors that focus on the precious
metals market alone. Technically, "correlation does not mean causation",
but we know that the biggest markets influence the smaller ones - the tail
doesn't wag the dog.
• Consequently, i.a. Gold / USD correlation means USD's likely impact
on gold, and Silver / S&P correlation means general stock market's likely
impact on silver.
• Of course, the price of gold impacts the profits (and thus share prices) of
gold producers, not the other way around. To make it clearer, the market
that we are trying to "explain" is first, and the market that is used to explain
the behavior of the first market is the second one in each row.

15. Shows You How Much The Markets Have
Moved Together In The Past
• It estimates the strength of influence that a particular non-PM market
is about to have on gold, silver and corresponding equities in the
coming days/weeks/months.
• The correlation coefficient ranges from -1 to 1. A negative value
means that a particular pair of markets moves in the opposite
direction on average.
• A positive value indicates movement in the same direction. The
closer to -1 or 1 the number is, the stronger the link between the
markets.
• The closer to 0, the more unrelated the markets likely are. To make
the distinction easier, we used colors.
• A green arrow means strongly positive link, a red arrow means
strongly negative link, and a yellow arrow means rather weak link.

16. …And That Are Likely To Move Together In The Near Future
• It enables you to pay attention to the markets that show the future trends.
It also enables you to detect a possible catalyst of either a breakout or a
breakdown.
• The correlation that has been in place recently is likely to continue to
remain intact in the near future.
• The short-term (based on 30 days) numbers change much more quickly
than the ones based on more medium- (90 days) or long-term (750 or
1500 days) values.
• The more short-term price move or trade in mind one has in their mind, the
more short-term column one should check. For short-term trades, the 30-
day column is usually most useful.
• The 10-day column changes too quickly to be used on its own - it's
provided just as a very early indication of where the 30-day column might
change shortly.

17. Gold Stock Investors' Favorite
• Helps you rebalance your silver stock portfolio
Our research shows that profits can be greatly increased thanks to this simple, repetitive action.
• Shows you what stocks to use for a short-term bet on a given move in the sector
Using most appropriate stocks can boost profits from a given trade as compared to using the
average of them (index, ETFs).
• Quickly and precisely estimates the future fair value of a gold stock
The future fair value is one that is neither overvalued, nor undervalued when gold moves up or
down to a certain level.
• Builds a ranking that is custom tailored to your trade
Golden Stock Picker adjusts its ranking according to the settings you choose. It identifies gold
shares that offer the highest exposure to the price of gold, and shows you all the important data
regarding leverage.
• Separates analysis from emotions by using trend lines
The trend in a particular stock is best reflected by a trend line. This line shows the price that the
stock would have, setting any emotional factors aside.
• A convenient way to check if your stocks are currently over- or undervalued
Golden StockPicker helps you make the most out of your gold investments by purchasing stocks
when they are undervalued, and selling them when they are overvalued.

18. Gold Price

19. Gold Chart

20. Gold Miners’ Aid & Mining
Stocks’ Performance

21. Thanks for listening
Gold Miners’ Aid & Mining Stocks’ Performance