How far will this correction run.???
The first day down off ever break in gold and shares is met with the generally complacent view that the pull back won't run very far because the move up has been so strong. Even in the consolidation period from June through August falls in the %R indicator from overbought have run all the way down the scale and taken some time to regroup while price has fallen at least 15 dollars. It would be dandy if this time Gold could hold its first logical point of support (the key break out and gap at $316 +/-) and resume its move higher. One would think during this period of seasonal strength that it's changes are better.
treasurestatefutures.com
Using NEM as an example, note that the declines experienced after the Ultimate Oss has turned back from 70 have generally been not to be sneezed at, even during the upward path of the last year.
stockcharts.com[h,a]dbcayiay[dd][pc50!c200!c20!c13!f][vc60][iut!Uc5!Uf!Ug!Lb14!Lh14,3!Ll14!Ld20!Lya7,14,28]&pref=G
In the last six years it should also be noted that September has been an up month (basis the opening trade and the last of the month) 66% of the time, though it should be realized that NEM is still significantly below where it was six years ago.
stockcharts.com[h,a]mbcaynay[d19960811,20020911][pf][iut!La12,26,9!Ud20!Uya7,14,28]&pref=G
So what does it all add up to....probably that until we wish and acknowledge the wisdom of having been more active on the sell side Monday and Tuesday the miners and Gold consolidate for a while with lows around $315 at best. But then there's that possibility it could be different this time.
jims101 |
