Playing the Gold Miner Comeback

Frankly, I don't care what gold is doing today. Instead, my attention is firmly on the miners. January 22, 2014     Playing the Gold Miner Comeback   Miners go for the gains Beware the dead cat bounce Plus: How to trade turnaround plays   Greg Guenthner coming to you from Baltimore, MD... Greg Guenthner Gold continues to slog sideways this morning after giving up its biggest drop in a month yesterday. Frankly, I don't care what gold is doing today. Instead, my attention is firmly on the miners. I see some potentially lucrative comeback trades shaping up. More on that in a quick minute... First, it's important to remember gold (the metal) didn't exactly perform well in 2013. But during the last few years, gold miners have fared even worse. Since late 2011, large-cap gold mining stocks have fallen more than 60%, while junior miners have tumbled more than 70%. But the first few weeks of 2014 have been different... "After bottoming in December, miners seem to be making something of a comeback," comments Rude researcher Noah Sugarman. "2014 may still be in its infancy, but gold miners are currently outperforming the S&P quite handily." It's true. Miners are snapping back to life. The Market Vectors Gold Miners ETF is up more than 12% in 2014--while the broad market remains stuck on pause... There are a couple things I like about mining stocks right now. Most miners are massivey oversold. And for the first time in months, we're finally seeing some bullish volume appearing--especially in more speculative names such as the Market Vectors Junior Gold Miners ETF (NYSE:GDXJ). Of course, there's a catch... Don't get carried away and plow a bunch of money into miners without a plan. As of today, I don't know if this move higher will stick. We could be dealing with a change in trend or just a dead cat bounce. But that doesn't mean you should completely ignore these stocks. Remember, you can play the potential change in trend-- just don't marry your trade. Stay selective and keep your stops tight. Don't chase the big moves. Buy the dips if you miss the initial breakouts. And don't get too caught up in the narrative... If you're still not sure what setups to follow, I'm featuring a hot gold miner trade in the PRO today. Click here to get access...         Can This Weird Trick Predict Stock Moves? One of our analysts here at Agora Financial has made a shocking discovery. Over the last few months, he has taken one of the NSA's powerhouse surveillance methods… and found a way to transplant it on the stock market! What's more… studies have shown a method like this can enjoy an accuracy of 86%. Some folks who have used similar methods have already seen incredible once-in-a-lifetime results. One man was able to finally hit it big after nine years by using a method like this "hacked" NSA strategy. He turned $40,000 into $20 million! Now our man has figured it out… and at great personal risk, he wants to share it with you. Click here now to watch his urgent presentation, before it's taken offline.           Rude Numbers Targets, Predictions and Wild Guesses   16 years ago the markets closed for the 1st time in honor of Martin Luther King Jr. Since then, the S&P has finished in the green on the week just 38% of the time. 31 million packages hit people's doorsteps on December 23rd, courtesy of UPS. That's the most ever and 13% over the prior year's peak day. 10 top S&P 500 companies had a collective market cap of $236 billion in the 1980's, according to Vconomics. Apple's market cap today is over $485 billion. $952 buys a Bitcoin today. The crypto currency has been consolidating just below $1,000 for a couple of weeks now... 72% of all stocks trading on US exchanges remain above their respective 50-day moving averages. The sideways market has yet to break down the majority of stocks in uptrends...     Rude Trends When to Buy... When to Sell   Many stocks go through periods where no one wants to own them. Shares can get cut down 50%, 75% or even 99%. It can be rough for long-term investors to watch these once-stellar investments sink week after week. But an experienced trader can find opportunity in what looks like a crumbling stock. In fact, these unloved names have produced some of the most explosive gains I've ever seen. Solar stocks are the perfect example. No investor in his right mind wanted to own these stocks for years. But no trends (up or down) can last forever. Early last year, solar stocks bottomed out and flashed a buy signal, giving patient traders a chance to cash in on the move. You could get a similar buy signal in gold mining stocks very, very soon. Click here to see how to trade these turnaround plays... [Ed. Note: Send your feedback here: rude@agorafinancial.com - and follow me on Twitter: @GregGuenthner]     Ignore At Your Own Peril Today's Must Read Links   A historic loophole in the currency market is back! Bigger than Benghazi, the IRS and the NSA Scandals... Combined? Is The White House Terrified of the "Secret $200 Retirement Blueprint?"     BE SURE TO ADD dr@dailyreckoning.com to your address book.       Additional Articles & Commentary: Join the conversation! Follow us on social media:         The Rude Awakening is committed to protecting and respecting your privacy. We do not rent or share your email address. By submitting your email address, you consent to Agora Financial delivering daily email issues and advertisements. To end your Rude Awakening e-mail subscription and associated external offers sent from The Rude Awakening, click here. Please read our Privacy Statement. For any further comments or concerns please email us at rude@agorafinancial.com. 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