Transitioning - October 25, 2011

[Pascal]

Dear Billy and/or Pascal,

Disclaimer - This question is not directly related to the Robot's current position, but rather an example of how to use the EV tools.

When/if you get a free moment. I have been monitoring the GDX Robot position and honestly, from what I can infer using EV tools, it looks bullish (large player EV has been increasing, bounce off lower boundary, PM sector looks poised to break above 0 with one more positive day, etc). I know the GDX robot uses other tools (TEV extension, etc.) but I just wanted to ask if I am interpreting the EV tools correctly? If I was not a Robot subscriber, I would consider GDX a long candidate, am I reading the tea leaves properly? How do you interpret GDX this morning, ignoring the Robot?

Of course, todays headlines, Europe, etc. can change everything.

Thanks,
Harry

The GDX Robot issued a short signal when the MG signal fell below the 0 level. The short position will be covered if we cross over the 0 level.

The GDX Robot has not been programmed the usual way: it does not follow money blindly but fades large moves in the sector. You are right that the sector is forming a base and might attract money, but in the past days, it has been pulled by the general market. You can see that the average TEV extension on the sector was neggative as of yesterday.

Today, with the fear of collapse in Europe, gold seems to attract "fear" money. We will see how the PM sector will react to this.


Pascal