Short term cycles have entered down phases and cycles up to 17 weeks are due for a down phase. A consolidation is due before a likely higher high around a projection of xxxx (subscriber version)
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The high base breakout on long term charts that we’ve been looking forward to is essentially complete, and confirmed by a breakout in long term momentum. The initial conventional measured move target is xxxx (subscriber version).
A long term cycle high is due in xxxx.
In the miners, short term cycles weakened but remained with the two longer cycles on the plus side. The 13 week and 6 month cycles are still near maximum strength. In past bull phases such conditions have lasted for weeks at times. Normally, negative divergences in these numbers would precede price peak in the sector. The weakening short term numbers suggest xxxx a xxxxxxxxxxxxx xx xxx (subscriber version).
Over the week ended March 11, 27 charts of the 52 mining stocks that I track had at least one buy signal. 40 had at least one sell signal, which means that many swung both ways. These are for swings of 3-5 weeks.
The plurality of sell signals suggests that the rally has run out of steam and needs a rest. I would expect a consolidation or correction and would be less aggressive about adding buys to the list for the next couple of weeks.
I rescreened the stocks that had at least one buy signal from the first part of the week, for repeat buy signals on Thursday and Friday. There was only one, and I wasn’t interested. I added no new picks this week, given the increase in sell signals, plus the additional reason I noted last week. It’s time to step aside.
Table and charts below (subscriber version).
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See analysis, table of picks and charts (subscriber version).
The strategy and tactics suggestions in this report are for informational and entertainment purposes, and illustrative of one approach. Nothing in this report is meant as personalized investment advice and you should not construe it as such. No representation is made that it is the best approach, will be profitable, or suitable for you.
