Wed., Sept. 8 Just After The Market Open

Not much to report, but I am going to put this post out now rather than wait until after the close, since the intraday technicals on my stocks have already reached oversold. I followed my plan and have orders in to buy at price limits below the market, there is no need to pay up when we are in the middle of a two day pullback so far. What I expect is soon, either today or tomorrow, we will see the miners start weak but close near unchanged or even positive on the day. That will be the sign the pullback is over and we should look out for how high the next rally can take us.

I have heard people around the internet capitulating. For example, Gary Savage over at Smart Money Tracker in a video interview with GoldCore yesterday said he is disillusioned with miners so won’t trade them again!!! WOW! What a strong statement, and a typical sign of capitulation from a person that has traded them close to 20 years, if I’m not mistaken. I’m not picking on him, but do think public statements like this are almost always a strong sign we are not only closer to the bottom than the top, but maybe near the start of something big!

For now, I will just post a DAILY chart of the GDXJ with fibonacci retracement levels to give us an idea where support might come in. I used GDXJ because I have limit orders out there trying to buy below the bid if it can get a quick drop lower, one I hope won’t last too long, just long enough for us to pick up more shares.