Time to Take Profits in
Our trading guru, Diego, says the fantastic run on the miners in
last few weeks needs to take a pause after hitting our 1st target
at the 200mda.
In fact, yesterday the GDX (
) moved decisively through the 200mda before settling back.
After a 30% move from Christmas with a 9d RSI reading of 72
(highest since Sept 2012), it's time to take profits or sell
Similar to the LOWS in late December, volumes are expanding.
Meanwhile, Gold the metal will see its first set of DEMARK SELL
SIGNALS on Tues. with a "9 SELL".
For those who don't know Tom DeMark's work, he is considered one
the most respected market timers on the street with a client list
that is a dream team of savvy hedgefunds.
DeMark Analytics LLC tends to key on key exhaustion points and
inflection points in markets, stocks, bonds, you name it.
These signals can be powerful.
While we are believers in the miners trade in 2014 and have
articulated this both in this space and on Fast Money, the first
pass of the 200mda is often a place to pause and pullback,
especially since it hasn't been there for a year.
[caption id="attachment_80668" align="alignright" width="600"]
Chart of the GDX showing move from December lows and elevated