So Far, So Good

Today we saw some follow through on the miners to the upside. This post will be short because nothing has changed, other than we added to our GDXJ etf position. We will look to do some more buying tomorrow if we can get the intraday technicals into oversold territory, which seems likely being they are already close to oversold intraday, and they are getting overbought on the daily chart. When markets put in bottoms, and especially after such extreme moves lower like we have witnessed in this sector the last 15 months or so, it gets difficult to buy the exact bottom. For example, today I noticed many amateur traders on various blogs stepping into miners with the hopes they have caught the bottom. Well, they might have bought the low, but it doesn’t matter the least, if they sell out after small gains, or on the first sign of weakness. They will just tell themselves they are being prudent, or managing risk, which sounds great except they are also guaranteeing they never make a big score, its that latter part that never gets mentioned or addressed!

So today we saw the HUI index finally break through the daily downtrend, which implies we have more upside soon, though does not guarantee it continues tomorrow. If the amateurs can get shaken out in the morning, enough to push the technicals to oversold on the 30 min bar charts intraday, we should be happy to but their stocks from them. Let them try again after miners rise another 5%, only to get scared out and give us their shares cheap once again….rinse and repeat. Its been a tough ride, but its just part of the game. If one has made it this far, now is definitely not the time to get out, its time to buy or add, or sit on our hands, but don’t give your shares away to a guy that has bigger nuts than you, it never pays! Here is the HUI gold bugs index, nice and simple….