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When Hope Is Not a Good Thing

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I would call today’s big picture cycle screening data for the mining stocks an unqualified disaster, were it not for the fact that the two longer time frames barely dropped below neutral. Moreover, the short term numbers reached a deep sell side extreme. So all is not lost yet. But another down week would crush any hopes of a near term rebound.

When all feels hopeless is usually when a bottom arrives. Right now feels semi hopeless. Maybe not a good thing.

Today’s mining stocks short term swing trade screen yielded 7 buy signals and 7 sell signals, with 38 stocks rendering no new signals. It’s not a recipe for a trouncing, but also not one that inspires confidence. I looked at the charts of the 7 buy signals and the setups promised no more than a dead cat bounce. So I let the dead cats lie.

The last 3 of the picks from August 24 got stopped out last week. The 3 new picks were all losers on the week, but the charts are not broken. At least not yet. There’s still still a reasonable chance of a rebound. I have added stops to those, just below support levels. The table and charts are in the subscriber version.

As for the metal itself, it looks set up for a little bounce here that should carry back to xxxx-xxxx (subscriber version). Then we’ll see. If they hang around up there, it would be a good sign that the worst is over. An immediate rollover would not be.

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Posted in 3 - Gold Trader
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