Wednesday, March 26, 2014

GDX and GDXJ charts: I bet you're wondering where the bottom is

Let's check in on that new bull market in the miners, shall we?

Here's GDX:


And here's GDXJ:

Ouch! That's a 20% drop in a week and a half.

It's funny that both are barfing lower on lower volume... you'd think the volume dwindle over the past 3 days means you're closer to a bottom.

I guess all the hedgies that bought in mid-Feb are busy dumping their last few shares at nasty losses.

Problem is, those guys will probably never want to touch miners again. So where does the next play money come from?

Anyway, I guess people will be expecting a bounce at GDX $23 and GDXJ $35, since those are shoulder points in a H&S bottom. We'll see. I'd rather stay out til it gets back above its EMA(16).

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