Steady decline - May 17, 2012

IWM is continuing its steady decline and the trailing stop was lowered to 79.61. Edges are too low for a new secondary position.
The bulls are acting like cowards and every intraday bounce attempt is quickly followed by deeper retreats. If this market needs a capitulation before resuming some rally, the confluence of Quarterly S1 (75.90) and the 200-day moving average (75.27) is the most likely support area for a potential reversal.

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The EOD GDX robot stays in cash with the EOD model in a short mode without edges.
The ST/LT settings only do provide an edge for a long position and the RT model closed yesterday in a buy mode. The protection is at the negative porosity of – 0.127% today.
GDX is sitting on the strongest support cluster in quite a while but real potential support only starts at the dual Yearly and Semester S2 (38.12), a logical capitulation target after some other possible short-lived bounce and whipsaw. GDX Stages are in strong decline mode on all timeframes and I prefer to see a bottoming pattern in price action before risking anything on the long side. I believe the real potential for big easy profits on the long side will need a general market upside reversal when beaten-down sectors including gold miners should lead the first days of a new market uptrend if history repeats.
Billy

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