Wednesday, July 21, 2010

The GDX Situation

Tuesday's action offered some surprising strength on both GDX and XLE following my bearish prognosis for both on Monday. Looking at the Gold Rotator components we see a mixed bag of 5 day price trend and an overwhelming negative Moneystream values with the stocks NEM and AU leading the pack. Most all the components are running 50-65% of volume surge although NEM and EGO are showing some high 80s% potential reversal volume patterns.
Virtually all gold components are displaying virtually identical technical patterns and look to be coming off a recent W support formation. Better odds for Longs may kick in once technicals cross above the MACD zero line and a short term uptrend is confirmed.

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