09Oct1:23 pmEST

A Hardcore Pawn Strategy

Gold bugs have a few more glimmers of hope for a new bull run today, beyond seeing the promising action to start the week in the precious metals and most miners, themselves. 

Specifically, to return to a "tell" we looked at previously, pawn stores can typically mirror the price of gold and, at times, front-run it. 

Thus, with EZCORP, Inc., below on the daily timeframe, rallying more than 5% today on news of a  strategic acquisition of 112 pawn stores in Latin America, paying $53.4 million in cash for them, the market seems to be particularly sanguine on EZPW's prospects going forward. 

Moroever, EZPW is rallying off a pivotal technical level, recently breaking over $9.50 and then coming back to probe the veracity of the breakout. 

Clearly, the bulls are willing to take on risk at this level after the breakout and retest, which is a rather promising sign going forward not just for pawn stores but also for gold. 

More on the market, as well as some specific actionable precious miners, in my usual Midday Video for Members

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