Watching For Clear Signs Of A Reversal

by Olivier on February 18, 2009

My assessment hasn’t changed. Gold miners, especially seniors, are lagging gold and silver. Bullion is the safe haven choice. The mining stocks come second. Today another big cap SLW – Silver Wheaton refused to move higher although silver was up. The stocks might be anticipating a gold and silver price correction. I’d be very cautious right now.

USO and UCO were down again and did close near the low of the day. As I pointed out yesterday I am watching for clear signs of a reversal. Overall there is still too much complacency. That would allow for a panic sell-off on high volume. The waiting game continues.

As far as strength is concerned, TSYS on my list is a very strong one. As long as the markets are trending down going long a tech stock is a somewhat risky proposition though. You are not fighting the trend of the stock but you are fighting the trend of the market.

Have a great evening.

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