Thursday Feb 7 2013
Mark Hulbert notes massive corporate insider selling. This is not the case for the miners where insiders have been buying.
On January 30 2013 we wondered if buyers were outpacing sellers in GDXJ. Not yet, as GDXJ returned to the 18.50 area again yesterday. But others in this group are showing signs of buyer interest. Consider XME which I own
XME
XME on the hourly chart exhibits a bit of a reverse head and shoulders pattern. It found buyers Jan 29, Jan 31 and yesterday at prices above the Jan 31 low. That is not a change in trend bugt is worth watching. In combination with what we believe is a topping pattern in the overall stock market this takes on greater significance.
SPX 150 MA
I have been saying the same thing for a couple of weeks. that stocks are overextended from the reliable lows we identified in June and November. John Murphy has identified a reliable cycle that commodity shares are the last to participate ina bull market. With stocks topping and buying beginning in XME, things may be falling into place for the run to the final high since March 2009.
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