Key Market Levels and Mining Stocks to Watch
Do NOT chase this market today. Long bonds appear to be the current hedge in this environment. When markets build absurd momentum and price action feels completely detached from reality, there’s usually one asset that takes center stage before the reversal—and that’s gold, which hit new highs overnight.
Friday’s selloff wasn’t even a true flush. The VIX term structure remains in contango. Friday was more of a rush to protect positions than a rush to exit them entirely.
The best indicators in a drawdown
Volume profile
% of stocks below 20ma (still high)
% of stocks below 200ma (still high)
Gold Volatility
Spot VIX vs 3m VIX (needs to be greater than 18pts)
VIX going from backwardation to contango (still in contango)
Indescriminate selling
% of stocks above the 200ma are nowhere near extremes.
Click the link HERE to see what are the key downside levels to watch, along with 4 mining companies currently on our radar.
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