Yes, some of the gold mining stocks have popped on the back of the recent gold rally, but so far the institutional money has yet to pile in boots and all.
By viewing the chart for Newmont Mining Corp (NEM) a large cap mining stock you can see that it has yet to enjoyed a strong rally. This suggest the institutions have yet to jump into this sector. But you notice the cycle suggest a rally is due in the months ahead. Wyckoff traders would like to see a nice base formed rather than a 'V' reversal, so chart watchers will place this stock on your list.
From the two charts below you notice two positives to the chart reader (1) it cycles well, (2) and it is in a well respected long term channel.
The Newmont Mining chart goes back to 1950, where as charting data for the XAU and HUI do not, hence this gold mining stock chart has more value. It is suggest folks study this chart with gold price (GLD) and (!INDU) to review the relationships between stocks and gold during up and down swings.
The swing.
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The big channel.
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NOTE: readtheticker.com does allow users to load objects and text on charts, however some annotations are by a free third party image tool named Paint.net
Investing Quote...
.."At long as a stock is acting right, and the market is right, do not be in a hurry to take profits"..
Jesse Livermore Trading Rule
.."Stock market bubbles don't grow out of thin air. They have a solid basis in reality, but reality as distorted by a misconception"..
George Soros
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