• 21 hours The Biggest Loser In The China-U.S. Tariff Tit-For-Tat
  • 2 days Trade War Takes Its Toll On Shipping
  • 4 days Is $90 Oil Possible? An Interview With Jay Park
  • 5 days Billions Of Dollars Are Flooding Into The Flying Taxi Space
  • 5 days Is This The Most Important Energy Project Of 2020?
  • 6 days Startups Are Dying To Give You A Better Death
  • 6 days U.S. Restaurants Are Struggling With Rising Labor Costs
  • 7 days The Banking Bonanza Is Just Getting Started
  • 7 days How The Trade War Ceasefire Will Impact The Energy Industry
  • 8 days Who Is The Most Dangerous Person On The Internet?
  • 8 days SoftBank Sees First Quarterly Loss In 14 Years
  • 10 days Prepare For An Oil Glut In 2020
  • 11 days Why A Strong Yuan Is A Promising Sign For The Trade War
  • 12 days What Would You Sacrifice For A Debt-Free Life?
  • 12 days Shareholders Urge Major Bank To Stop Funding Fossil Fuel Companies
  • 12 days Tariffs Are Causing A Slowdown In U.S. Manufacturing
  • 13 days The Great Silicon Valley Migration Has Begun
  • 13 days 3 Oil Stocks Paying Out Promising Dividends In 2020
  • 14 days How Fractional Trading Is Democratizing the Stock Markets
  • 14 days Why Smart Money Is Looking To Short Aramco
Another Retail Giant Bites The Dust

Another Retail Giant Bites The Dust

Forever 21 filed for Chapter…

What's Behind The Global EV Sales Slowdown?

What's Behind The Global EV Sales Slowdown?

An economic slowdown in many…

Is The Bull Market On Its Last Legs?

Is The Bull Market On Its Last Legs?

This aging bull market may…

  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