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Thursday, 10/20/2016 6:38:57 AM

Thursday, October 20, 2016 6:38:57 AM

Post# of 44341
Suppressed metals while miners run ahead....

In the past 10 days or so, after the big slam down in metals to start October, we get a weak suppressed bounce in the metals....

But at the same time we see a decent surge this week in miners following thru last weeks bounce ,making miners run far ahead of the metals. Does that make you nervous at all to see the miners running ahead of the metals?
On what basis does a momentum push happen here for the miners when their metals are staying down?
Maybe investors and traders have been so striken by the 4 year collapse of the mining sector,they are Not satisfied with a super pumped up first rally/2016, one which soared way too far too fast in my view,very overbought ,from January thru July, finally peaking in August...the investor/trader just cant wait to load up on the miners again ,is this an impulse buy ?
After te August peak, we saw a big smash down in the metals and miners,to a fair retrace zone,some worth buying again , others didn't fall enough for me...its a guessing game now whether we get hard resistance soon for miners as they reach that danger zone and another downwaves thru the fall season to finish the year in a larger pullback zone, or whether we see miners get pushed higher still, to revisit the August tops in the fall and end the year on the higher side of the chart picture.

It seems strange to me to see miners running higher while the metals stay stuck near the recent pivot lows. something doesn't feel right about this, and if I had to guess, we might see the miners get a hard smash down soon. what reason do the miners have to be surging again now, while the metals are Not.

As I study the charts,I think buying miners now at this current bounce into resistance zones is a dangerous gamble.
When the metals made the big 2016 rally to peak in August, there was reason for the miners to follow along. But with the metals still down in the recent bottom zone,theres No reason for miners to be running much higher like they are this week.

I don't trust it.Watch out for the next miner slam fest

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