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Pascal
04-05-2013, 08:00 AM
As can be seen below, there were two phases in the bounce of yesterday: a steady uptrend followed by a side-way action.

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It is interesting to look at the respective LEV patterns of the four stocks that take 50% of the GDX weight. We can see that these stocks had interesting patterns: large players were not selling during the second part of the move.

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For the four following miners, the situation is somewhat different, as AUY and KGC showed profit taking.

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Finally, smaller stocks such as IAG, GFI and RBY displayed selling.
This means that the bounce has chances to progress here since none of the four heavyweights were under pressure.

The model is in "weak short," and now close to turning to a "strong buy" signal.
This signal can be sustained if the LEV pattern on the four leaders does not show distribution.