With the RT GDX MF available, it is hard not to be sucked into new short-term positions. This is the reason why I want to show a LT perspective on the sector. This LT perspective shows that a confirmed Buy signal might be one month away, because the blue average line is still above the 0 level. (A confirmed Buy is when the true black signal crosses over the blue average line when this is in negative territory)
Of course, the GDX MF will issue a Buy signal if we first hit the OS level, which now stands at -1.45%
As of now, there is no reason to buy: capitulation is still not occurring yet, as we can see that the LEV pattern on GDX is still not that negative.
I do not believe that we can get into OS without a meaningful capitulation. So, our short position still has legs.
Pascal
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