In a hundred years of data, starting with Homestake and changing to the XAU in 1983 there was only one selloff to a monthly RSI worse than now. That was a reading of 21 in 1924. Now its plunged to 23.9 and the "terrible" lows were few in number. 24.8 was clocked in 1942, 27 in 1948 and 25.3 in 2008. That's the list and all were followed by outstanding rallies - virtually immediate to the reading.
Action in the gold/silver ratio has provided an outstanding guide to important tops and bottoms. This worked very well a year ago in April and silver's action now is accomplishing the opposite extreme.
The S&P is nowhere near such a severely oversold condition.
En annan artikel om varför miningbolagen gått ner skriven av Peter Hodson
What will it take to turn this sector around? Generally, when things are so bad investors get sick to their stomachs, a bottom is usually close at hand. Talking to investors recently, we have to believe we are near — or even past — that point already.
- Selling begets more selling
- Political risks
- Financing risks
- Lack of takeovers
- Poor studies
Inga kommentarer:
Skicka en kommentar