What can I say, markets are gapping up and down almost every single day and remain choppy. Welcome to whipsaw country. A perfect example for the markets’ choppiness would be LIWA – Linhua International that printed an almost picture perfect breakout to the upside yesterday. Today is another story though. An ugly reversal candle. Everybody doing the buy and hold thing is getting chopped to pieces. Unless your timing is perfect and you are a very active trader or day trader you are much better off standing aside until the markets begin a trending move.
Up-to-date LIWA – Linhua International Chart on my public list.
That being said the gold mining stocks could either bounce from here or start building bearish continuation flags. This would imply further downside potential. GG – Goldcorp is displaying such a pattern. The stock was not acting well during recent months. It will be telling how these pattern resolve. Keep a close eye on the big cap names in order to identify gold sector strength or weakness. IAG – Iamgold which I mentioned in the past in the meanwhile has developed into one of the strongest big cap gold stocks.
Up-to-date GG – Goldcorp Chart on my public list.
An interesting small cap addition to my public list is GWY.V – Galway Resources which acted extremely well today. The story right now is about their property in Colombia neighboring VEN.TO – Ventana Gold. I traded GWY.V a few years back when it was a molybdenum story stock. I know I am being repetitive here but do not get emotionally attached to any stock. Stick to the charts. No matter what the story is. This will avoid lots of grief. That being said the chart right now looks great. Excellent technical strength. Let’s see how the chart evolves over time. GWY.V is part of my Colombia Sector Overview Chart.
Up-to-date GWY.V – Galway Resources Chart on my public list.
Never fall in love with a stock.
Have a great evening!