The turn higher has begun

Of course, we cannot know how strong the move will be, but it appears the turn high in miners that I have been stalking is finally here. Starting on Thursday, May 30, 2019 and following through very strongly and on huge volume Friday. I was adding here and there over the last several weeks, patiently waiting for miners to resume their uptrend. Further, the GDX also closed up over it’s 50 day moving average in an explosive move, the GDXJ fought back above it´s 200 day moving average, and almost all the precious metals etfs triggered PSAR buy signals (the pink diamonds on the charts), suggesting the trend has changed. See GDX and GDXJ below.

And gold itself looks positively splendid, jumping on big volume and turning the trading pattern back into an uptrend (higher highs, and higher lows). A lot of this has to do with what is happening in other markets, like the US dollar and stock markets, as well as oil, which I will cover in the next post. For now, suffice to say it’s good to see the downtrend halted in its tracks and miners turn higher, it just remains to be seen how far they can run, but I suspect it will surprise on the upside. I am already heavily invested (see how accounts I manage are invested on the paid portion of this site), but will be looking to add to positions carefully over the next few days and weeks. I will not run out and pay up on Monday, but will look for oversold signals on the 30 minute bar charts to take advantage of small pullbacks to add. Still, an investor should already be mostly invested, now is the time to just add some extra leverage, but never chase prices higher when buying large positions.