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Gold Miners and Energy Update...

I noted when I released the quick trade watch-list on Sunday that many gold miners had put in a tradable reversal last week. It bounced for a about seven days and this seems like a logical place for the rally to fail if we are headed for a deeper correction.

We can see that a new high was not made and we are now basically sitting at the 50 dma. It could bounce from here but it could also fail and head down to a new low. I took some small profits on a few positions that I had bought and I have breakeven stop losses on some others. We should have more clarity about where it is headed short-term by the end of the week.

With regard to the energy sector, we can see that the energy ETF (XEG) has reversed lower and has been following the price of oil back down ($56 at present).

The gap has been filled but this can still head lower. I would want to see a hard reversal in energy stocks above the 50 dma to get me buying again.

A few of our companies (MIN, SKE, MTA, and AMX) have really taken off but overall now is a time to be patient and wait for some more clarity to emerge in the markets.



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