Miners are pissing me off again

They are correlating again with the overall market.  Miners are held for leverage and no other reason.  The risk of holding stock requires reward.  Too often in the last 3 years, the miners have offered 1:1 with the metal, often even worse.  This is a symptom of markets that are no longer free, but instead they either managed or play things for the algos at JP Morgan and Goldman.

It is getting increasingly difficult to find any rhyme or reason in these markets.  I fear a whole generation of investors are going to abandon the markets after coming to fundamental understanding that the markets are rigged.  I also believe that success may be found for traders that emulate the crooks and their momentum algorithms.  That is why I am putting the Elder impulse system through a thorough test to see how successful a momentum system can be.  Today I am posting Elder charts because most of the charts are showing that potential long signals may be coming this week.

GLD did better than the big miners today, closing up 1.41% on the day.  Stochastics are starting to hook, while RSI reversed and is dead on neutral.  Until the last 90 seconds of trading, the Elder chart was painting a blue bar, positive MACD histogram slope and price below 13 day EMA (just barely).  This chart will quickly paint a green bar on a slightly higher price that will exceed the 13 day EMA and turn the MACD slope positive.  It could happen tomorrow.  I chose to pull the trigger at the close  with the idea that higher price tomorrow confirms the entry with a green bar.  If not, I have a tight stop to prevent carnage.  The bounce came right at the Fibonacci 38.2% retracement (114.69), which is now short term support.  Further support comes in at the breakout level of 113.25.  I bought the Jun 2011 GLD 110 Call @ 7.75 with a stop at 6.95.



SLW was looking great early then succumbed to selling pressure, closing where it opened.  It was flirting with a blue bar for most of the day.  Price bounced at the Fibonacci 50% retracement level.  Support is the break out level or around 17.80.



TGB also bounced higher and was strong until the end of the trading day where it gave up quite a bit and ended lower than it opened.  Notice the MACD histogram took on a positive slope, which painted the daily bar blue. The 13 day EMA comes in at 5.22 and has to be exceeded to turn the bar green (both histogram slope positive and price above 13 day EMA). Stochastics are starting to hook.  The Bollinger band waits at the first level of support at 4.66.

GDX looks like all the others today.  Sold off late.  Support comes in where it bounced, the 200 day MA.  As with all of these charts today, stochastics are trying to hook.  Unless we get a major trend change here, the 200 day MA usually provides excellent support and may be signaling that GDX has very little down side risk left.