HUI bounces off its 200 day ema.
Trend indicators are approaching the oversold area. Ultimate has completed the recycle move from 70 down to 30. DMI has a high red line, Full STOS are in the dirt and starting to flatten.
stockcharts.com[h,a]dbcaynay[dc][pc50!c200!c20!c13!f][iut!Uya7,14,28!Ll14!Lp14,3,3!Ll14!Ld20!Lya7,14,28]&pref=G
However, the technical picture for GOLD took a black eye and Silver has lost its charm. Come back from the depths was encouraging but as of yet there is no sign of a turn. It's bottom fishing type of time, but as of yet the depth finder is still searching.
MDG is one of the more extreme cases. Interestingly its presentation at the Denver Show was thought to have been one of the best, if not the best. We seem to see again that when the sector gets in the news, stimulating public buying, that somebodies use the new volume to unload into. A 25% decline off the high just about constitutes a bear market. These miners are proving to be most cyclical and buying them is almost a death wish if they aren't at the bottom or that cycle. MDG now has five months of volume overhead and is falling on increasing volume. Valuation correction??? Hardly a question, more a fact.
stockcharts.com[h,a]dacayiay[dc][pc20!c200!c50!i!f][vc60][iut!Uya7,14,28!Ul14!Uj[$hui]!Ll14!Ld20!Lya7,14,28!Lp14,3,3!Lj[$hui]]&pref=G
Now the next time the COTs get into an extreme condition, when the public is 5.5::1 long, when the miners aren't confirming the move in gold and it's the early part of October what will we do??? Probably not sell enough because there will be every fundamental reason ringing loadly to be long.
jims101 |
