Sunday, January 25, 2009

Gold Miners GDX is challenging MA200 to pronounce that Bull is Back.

While everybody on the Bubble vision is preoccupied in self inflicting "End of the world" and "Nowhere to hide" scenarios Gold miners are taking high by high. Silence here even from self pronounced Gold Bugs and Letter Writers, which are still hiding from their subscribers, is a very bullish sign. Gold has broken to the upside even with US Dollar still topping out at recent highs, Panic VIX is going down, markets are positioning themselves for a rally. One of the biggest (we are sure here it is The biggest) dislocation of assets in the world's history is going to be unfolded in an explosive fashion. Gold markets needs just One Percent of new money to increase Demand by 100%. Chart is showing that Fireworks in gold miners is in place very soon.
Technically speaking they are Breaking to the upside from Cup and Handle formation. MACD is at BUY, STO and RSI are positive, once MA200 broken up our ATM will be back in working order. Sector is very small, it will benefit from significant Inflow of pushed to search returns money from falling Treasuries Bubble. To spicy things up it is like a call on general equity bullishness, falling US Dollar, rising Gold price and money making machines with low oil and high Gold prices during recession suppressed earnings in general economy.
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