Another Tool In The Toolbox!
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Charts are fascinating! They reflect human action. We look at charts for direction, for support and resistance. Here is a chart (courtesy Stockcharts.com) that is just now in the process of showing a buy signal for gold mining stocks.
Featured is $BPGDM. This index rises or falls according to the bullish percentage among the stocks that make up the index. At the top we have inserted GDX, the miners ETF. In the past, whenever $BPGDM rose up from below 25 it gave a buy signal for mining stocks. Notice how the blue arrows point to excellent timing. The supporting indicators at the bottom (CCI and Slow Sto) have just turned positive, to provide confirmation.
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Peter Degraaf is an investor with over 50 years of experience. Google him or visit www.pdegraaf.com
DISCLAIMER: Please do your own due diligence. Peter Degraaf is NOT responsible for your trading decisions.
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Peter Degraaf became interested in silver and gold when the Governments of the US and Canada proceeded to remove silver coinage from circulation in the mid 1960s.
He noticed the effect of Gresham’s law: “Bad money drives out good.” He became a coin dealer, attending coin shows all over The US and Canada. In 2001 he semi-retired from coin sales and concentrated on investing in precious metals. He mastered the art of technical analysis and applies this to his investments. In 2001 he started publishing a daily and weekly market report. His website is at http://www.pdegraaf.com/.
