Wednesday Feb 13 2013
I admit I am subject to social mood myself and my mood was not improved by GDXJ dropping agagin today. But let's take a look at the end of the day results for this class of risk assets. AS we have shown many times, topping and bottoming a a process. There is no such thing as THE top of a market, markets top and bottom at different times. Here is such an example.
Charts referred to are set for one hour and a 50 bar Moving average.
REMX made a low Feb 7 and has moved above its 50 bar one hour moving average.
KOL did the same thing.
XME made a low January 31 and completed two higher lows since.
SIL made its low January 28 and has recorded two higher lows since.
GDX broke down through 41.50 this in late afternoon trading,
GDXJ also had a poor showing dropping late this afternoon to the 1781.
It seems fair to say that GDX and GDXJ are laggin the pack of commodity producers and may well the last to form bottoms.
The Reuters Jefferies CRB index remains in an uptrend off its November lows.
Stocks are still moderately extending gains but have gone sideways at 1515-1520 the last few days. It may be that commodity producers are attracting attention as stocks continue in their overbought position.
I don't think anyone noticed $GASOline Spiked 22 cents today !!! ... (yet).
Posted by: Farley Inglis | February 13, 2013 at 06:36 PM
Farley
Crude oil has held up well giving back very little of its run up
We will see an inflationary bubble just as we did in 2008 over the next few months
Posted by: Dennis Elam | February 13, 2013 at 09:54 PM