Thursday, January 28, 2010

Lunch Time Advisory -- time to buy!

Just kidding.

Commodities (base metals the notable exception) and EMs holding up better than one might have expected on a day like today, but I don't see much reason to read too much into that. Gold still hasn't broken down, so there is still hope for hype.

But gold miners are finding zero traction so far. They calmed down for a couple days there, only to resume the downward slide today. Here's the point & figure chart of the GDX:GLD ratio that we have been following in the newsletter:



The fallout from that triangle breakdown has been gratifying.

I am trying to make a bona fide effort to hunt for bargains in this mess of a market, but the selling pressure is just so wide-spread on this downturn. It will be hard to identify good deals until we see some indication that the broader markets are stabilizing.

Buen Provecho!