The Precious Metals Sector Money Flow finished the day unchanged at -0.50% and closed 0.30% away from the average MF + porosity (+0.13%) threshold needed to trigger a long signal for the GDX robot. Even a stable Money Flow from now on could trigger the long signal soon because the average MF is declining by -0.10% a day.

With a neutral MF and yesterday’s Monthly S2 (50.09) key support unable to hold within a strong downtrend, I still view Monthly S3 (47.50) as the most logical final capitulation target for the month of March. Pre-market is pointing to a new gap down and it might revisit Tuesday’s lows around Weekly S1 (48.66). The two support clusters have a total strength of 9 equal to the first resistance cluster alone and many professional floor algorithms will take this into account in case of liquidity problems or a lack of bids from large players. But the RT long bias stays active and doesn’t show signs of a new selloff at this stage.

I am waiting in cash for the next episode. I have no intention to short and I am ready to buy back my long position on a confirmed buy signal.
Billy

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