• 17 hours Gold ETFs See Record Inflows
  • 19 hours What's Fueling The Silver Stock Rally?
  • 2 days Fake News Is A New Virus Without A Cure
  • 2 days The Countries Hit Hardest By COVID-19
  • 2 days China's $700 Billion Infrastructure Package Sends Copper Soaring
  • 2 days Are Investors Ignoring The Largest Financial Risk Ever?
  • 3 days Americans Are Counting On Another COVID Stimulus Check
  • 3 days What's Next For Hong Kong?
  • 4 days Bitcoin Fails To Stay Above $10,000
  • 4 days Bill Gates And Big Oil Chase The Dream Of Nuclear Fusion
  • 4 days Top Jeweler To Use Only Recycled Gold And Silver
  • 5 days America’s Multi-Front Meltdown
  • 5 days Gold Up As U.S. Civil Unrest Escalates
  • 5 days How BlackRock Became King Of ESG Investing
  • 6 days Americans Don’t Care if TikTok Is A Security Threat
  • 7 days What’s Next In The Trump vs. Twitter Drama?
  • 8 days Escalating Tensions Could Crush $52 Billion China-U.S. Energy Deal
  • 9 days The Fed Is Printing Money At Unprecedented Levels
  • 9 days How Is The Real Estate Market Handling COVID-19?
  • 9 days Gold Flat As Markets Await Fed Chair Speech
The Problem With Modern Monetary Theory

The Problem With Modern Monetary Theory

Modern monetary theory has been…

Zombie Foreclosures On The Rise In The U.S.

Zombie Foreclosures On The Rise In The U.S.

During the quarter there were…

  1. Home
  2. Markets
  3. Other

Major Raid on Miners - Any Good At All? You Bet...

  • 1st positive - As it is, HUI (gold miners index) has just retraced to 38.2% of Fibo. level (around 398 vs. yesterday's close at 399) within its multi-year bull rally trend since 2000.
  • Viewing from this big-picture perspective, a 38.2% retracement from its peak is a healthy correction within the bull's context.
  • In fact, it has more room to withstand further correction to 50% Fibo. Level (around 329) to be right on the support of this multi-year bull trend line.

HUI Weekly Chart

Note that the selling volume (GDX) in the past few days certainly look "capitulative" in nature...

Market Vectors Gold Miners

  • 2nd positive - $BPGDM (bullish percentage on miners) has finally come down to the level last seen in 2011 prior to its explosive run to the all-time-high peak.
  • In other words, even if we do not expect a quick rally to happen soon, sentiment on miners has once again being stretched to an extremely bearish level...not much room to be more bearish!

Gold Miners Bullish Percent

Side note: one may argue with the potential H&S forming in HUI now, but, bear in mind that H&S formation always bear more significance in a reversal from major top rather than an intermediate top (as in this case)...

 

Back to homepage

Leave a comment

Leave a comment