Hold support and exhibit relative strength to just about everything. To hell with what the fetishistic gold stock haters have to say. Dial out to a bigger picture and it's even better. That said, resistance is up above.
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Not only that, but SIL and GDXJ have moved up from this week's bottom a little more strongly than GDX/$HUI.
ReplyDeleteGary, I'm just a guy who watches the L2 all day on company time, but I really think Tuesday's dump in the miners was capitulation-like. People were dumping beautiful producers and promising explorecos with wanton abandon, not caring about what bids were out there. As if they were recently-bought-in momos, all wanting to cut their losses in stuff like SBB, KGN, AR and so on. That action, plus the subsequent surge rebound in all those stocks, really make me think we had a strong bottom in the miners that's worth reckoning with.
Plus, in the broad market, short interest in the S&P500 this week/last week was at its highest since March 2009's low. I wistfully remember the days when you used to be a contrarian :-) - so what do you make of that? Especially when you combine it with the flushout of the PMs that you noted in your CoT last week? And the lack of weakness in US auto sales data?
I dunno... I'm looking at $9.90 Alcoa (AA) and shaking my head. It's been clobbered like the miners. Would you think that sort of price is justifiable?
Just handing over some ideas. I might only be the last fool, and unsufferable momo, and the world's best contrary indicator - but maybe it's still useful to you as a market-psych datapoint.
Hey IWNATTOS, I have a bullish theme operating here. When I say Oct should bring about change, that is what I am talking about. But, see next post about GSR and USD, and see SPX bottoming short of 1020, which is a magnet, and I am not so sure the bottom is in. That's all.
ReplyDeleteBTW, I was buying SBB and KGN and sleepily holding AR during the carnage. All good stuff. That's when you buy the gold stocks.
Great post/comment btw. Thank you.
Hey, I never believed all that stuff you were saying about HUI 490-500. Then, per above, I feel it got proven true.
ReplyDeleteWith that in mind, my own magical chart formula is the EMA(8), and it seems like it's being tested and failed everywhere this afternoon. So, best to just keep me as a contrary indicator for now.
Though of course, SPY is not gold miners is not explorecos is not silver miners is not silver is not gold is not copper etc....