REEs And Gold Stocks Rolling Over

by Olivier on October 26, 2009

It sure looks like more stocks and sectors are rolling over here. I am still reluctant to outright sell everything and go to cash but I might start lightening up and selling a few positions this week. I’ve updated and annotated lots of charts on my Public List. Here’s the gist of it:

A few stocks: SIO.V – Sensio Technologies, MELA – Electro Optical Sciences and NFLX – Netflix are doing extremely well and hitting new highs. Others like GG – Goldcorp and GDX – Market Vectors Gold Miners are not looking good. GG – Goldcorp has fallen back into its pattern instead of breaking out as an ascending triangle would imply. It doesn’t mean it will drag down all other gold stocks to the downside but it is a red flag. LSG.TO – Lakeshore Gold is trading within a similar pattern. Another one to watch in order to gauge technicals within the gold mining sector.


Up-to-date GG- Goldcorp Chart on my public list.

As mentioned in the title of the posting the Rare Earth stocks are starting to roll over and technical damage is increasing. Then again AVL.TO – Avalon Rare Metals is hitting serious support and QUC.V – Quest Uranium has possibly started to bounce today.

Quest Uranium

Up-to-date QUC.V – Quest Uranium Chart on my public list.

It’s tough to tell when exactly the REE sector will be able to bounce. This week will be telling. If you don’t know what to do and if you can’t sleep at night, your position size is too big to handle. There is only one thing you can do. Lighten up and sell down to your sleeping level.

Have a great evening!

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