Gold question

[Pascal]

The following question was posted on the Google VIT group:

Pascal,
in your June 20 comment of the day you wrote:

"I am a believer in buying oversold situations in areas where you have accumulation, and gold miners and gold are under accumulation or at least are showing signs of early accumulation."

But when I looked at GG, SLW, GDX, SVM, RGLD tickers in the USA stocks on the morning of June 20 it didn't seemto me like the LEV was positive for any of them or even increasing much.

And yet it turns out you were right and these stocks rose on the 20th and the 21st.

Please let me know what indicator you were using that led you to say that gold miners were seeing early accumulation.

Thanks,
Dan

The main indicator was the GDX Robot. One of its component is the GDX MF, which was close to issuing a buy signal last Friday and indeed issued it at the close. You can visit the last GDX Robot comment to see that indeed, there was strong accumulation on the GDX ETF.

When I see accumulation, I would do like you: visit the different stocks that are part of the GDX ETF, starting with ABX, which carries the strongest weight. ABX was under accumulation. GG was slightly under accumulation, but the Canadian equivalent was under heavy accumulation (C.G). We were early, but still, you could see that money was moving in the sector and this was detected by the Robot, which issued a strong buy.

I pointed out at GG, because it had a nice standard TA chart: bouncing off its 200MA.
By the way, the bounce seems to occur on decreasing volume, but we are still early in the day and we will probably have a bounce on strong volume today.

I also attach below visuals on where to click in order to quickly view the EV pattern of all the stocks in one sector.


Pascal