HEP, Canadian Gold Producers Income ETF Update.

 

 

HEP is a Canadian ETF that says it is an income fund. I would have to do a lot more work to confirm that, as it doesn’t even have an options chain I can look at. It’s just one of those ETF’s that is only about $4 away from crashing through support. GOEX is another one. Not until all gold stock related ETFs have crashed to new lows that the majority might throw in the white towel!

Nobody has capitulated yet, which I think still needs to happen. It may take until early 2019 to bottom but then gold stocks could rally well into 2020.  This run can move HEP up to the $65 range.

The Gold/Hep ratio sits at 63:1 and that should spread even further as this bearish phase continues. When this hits a real bottom, I may buy some token positions only, as I will work GDX and GDXJ the hardest.

The decline since the 2011 peak has been 5 diagonal waves, which I will not count over and over for readers entertainment. All my work only requires 3 lower degree levels, and Minor degree is my lowest. Minute degree wave counts are only good for day traders or for those that have no clue what the bigger trend actually is.

2011 was a gold/silver 30 year mania peak and it’s correction is far from over. By the end of this year we may be 1/3 of the way through it. Fast violent reversals will happen and if the planning is not fully underway now, you will not be prepared when the first “A” wave in Primary degree arrives.

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