SEPT 25 I have NOT even mentioned Miners lately. They did not look ready, they weren’t acting correctly. Depending on your daily cycle count, Miners may be very deep in their count, due for a bounce. Some have them only on day 25, deep enough, but I have them on day 36! THAT is late. Today , we may have had a “Stop run” on the May lows. I decided to take a position, because at these very oversold levels (Seen on the chart below), we have had some nice rallys – Good %-Gainers. Its only a LOW RISK ENTRY, because you cut positions if we drop below todays lows. Its high risk, because Miners have been selling off . Its a contrary trade set up.
Note the RSI & STOCHASTICS :
-Then please notice that the MARCH bounce from these oversold lows wasn’t a buy & hold for very long.
-Also note that the DEC 2013 lows took a while to bottom before rocketing higher.
-May lows rocketed higher. What will happen here? I cannot say for sure, but it was a decent entry and I wanted to share why I took a position.
EDIT: I want to add that I got a BUY SIGNAL known as an RSI(2) on GDX Monday . Over 95% reliable Buy signal
Chart Freak Setup…….To the MOON!