Thursday, October 17, 2013
Here's something interesting - GDX and BVN
So gold popped on the London open.
Let's assume someone was very short gold; that's why they were puking into nonexistent bids during electronic trading. I guess the (temporary) end of the debt ceiling impasse means gold has no more reasons to go down, so they have to close out their short. Inefficiently, I guess.
So now the gold miners have popped:
They still haven't broken their Bollinger mean, so this is still not an exciting move to me. And the trend hasn't obviously changed yet. This could just be short-covering.
Illustrative of this:
Suddenly Minas Buenaventura is +3SD and >50RSI in the first time in ever. On no volume, but still it is a change.
One day of short-covering is not sufficient cause for any goldbug bottom-caller to gloat. The only thing that has changed for gold is that debt-ceiling nonsense; has Goldman even retracted their $1000 gold call yet?
But at least there is that air of hopefulness that makes me want to pay attention.