Miners just plunged, and they did right after tricking the news-chasers. Fortunately, you knew what to focus on.You knew (at least, if you read my previous analyses) that the rally that was likely to follow the surprising numbers most likely already happened. It’s all about getting the right perspective on what’s happening instead of being pulled by it.It’s about “hovering over the emotionality of the market” rather than being affected by it. Yes, it’s not easy, especially for those who have just begun to invest or trade their capital, but it is doable.(Click on image to enlarge)
The vertical lines marked the current and previous cases when the employment numbers surprised the market in the same way, and the reactions were similar. Paying to that, instead of blindly following the popular narrative, would have made it easy not to get into the bullish camp after the initial reaction.Those who moved to the bullish camp at that time are quite likely still in the long positions, while we are holding profitable short positions (entered on Oct. 20, with GDXJ at about $35.20) in the junior miners.(Click on image to enlarge)
What’s next? The very short-term GDXJ chart reveals that miners also broke below their August lows as well as the late-October and early-November lows, and the implications of those breakdowns bearish. The decline is simply likely to continue.Please note that miners moved lower despite a daily rally in the stock market.(Click on image to enlarge)
Stocks themselves just moved to their declining resistance line, and they even closed slightly above it. Will this tiny breakout hold? I doubt it.More By This Author:The Near-Term Profits And The Key Long-Term Factor Down, Down, And Down Again. The Precious Metals Slide Re-Starts. What A Rally In Miners! Wait… Where Did It Go?
Miners Show The Way – Not Only For Gold
