Gold shines

Not at all surprised by the bearish action yesterday

If you were following the Market Monitor methodology, you were already ahead of the market in anticipating a rally failure and on 26 th December you had a clear signal of possible rally failure.

The 65 days ratio is bearish. We still have small pocket of momentum. Leading stocks like GOOG, AAPL, GS, BIDU, ICE, etc had down day. The bearish move on all indexes today means the IBD number of distribution days model is firmly in bearish territory on all indices. All have 5 plus distribution days. If you see the IBD Big Picture today, it is also telling the same thing.

January is often an uncertain time for the market. Given that history, along with 299 stocks down 4% plus was almost a 300 day. The small rally in last 10 days has given back all its gain. stocks’ recent jitters, it’s a good idea to switch to a conservative approach. Avoid new buys. Cut losses short. If you own a leading stock that’s starting to waver, consider taking partial profits.

Implication of this for IBD 200 and DT is , chances of follow through post breakouts are low and the swing size is smaller. So one needs to have very low per trade profit expectations or stay on sideline till things improve.Market conditions are not ideal for any aggressive position building. Everything indicates high risk zone. Selling often feeds on itself and even the strongest sectors and stocks can quickly give up 10 to 20% in matter of day or two.

But this market has time and again recovered from such selling. So current hypothesis still is that the market is essentially been stuck in a small range for last 4-5 weeks. A 300 plus positive day on Market Monitor here might change this view. Ideally a 500 plus day on 4% breakout would be ideal. Any 300 plus day on downside will accelerate selling. But a reflex bounce in a day or two is a possibility.

One sector which attracted buy interest yesterday was Gold. It was a broad based breakout in the sector. Some of the gold stocks worth looking at are :

ABX,Barrick Gold Corp (Google  Yahoo  Earnings  Chart) 
AU,Anglogold Ashanti Ltd (Google  Yahoo  Earnings  Chart) 
AUY,Yamana Gold Inc (Google  Yahoo  Earnings  Chart) 
AZK,Aurizon Mines Ltd (Google  Yahoo  Earnings  Chart) 
BQI,Oilsands Quest Inc (Google  Yahoo  Earnings  Chart) 
BVN,Compania De Minas Buena (Google  Yahoo  Earnings  Chart) 
CGR,Claude Resources Inc (Google  Yahoo  Earnings  Chart) 
EGO,El Dorado Gold Corp (Google  Yahoo  Earnings  Chart) 
EXK,Endeavour Silver Corp (Google  Yahoo  Earnings  Chart) 
GBN,Great Basin Gold (Google  Yahoo  Earnings  Chart) 
GFI,Gold Fields Ltd Adr (Google  Yahoo  Earnings  Chart) 
GG,Goldcorp Inc (Google  Yahoo  Earnings  Chart) 
GRS,Gammon Lake Resources (Google  Yahoo  Earnings  Chart) 
GRZ,Gold Reserve Inc (Google  Yahoo  Earnings  Chart) 
GSS,Golden Star Resources (Google  Yahoo  Earnings  Chart) 
HMY,Harmony Gold Mining Co (Google  Yahoo  Earnings  Chart) 
IAG,Iamgold Corp (Google  Yahoo  Earnings  Chart) 
KGC,Kinross Gold Corp (Google  Yahoo  Earnings  Chart) 
KRY,Crystallex Internat Corp (Google  Yahoo  Earnings  Chart) 
LIHR,Lihir Gold` Limited ADS (Google  Yahoo  Earnings  Chart) 
MFN,Minefinders Corp (Google  Yahoo  Earnings  Chart) 
MGN,Mines Management Inc (Google  Yahoo  Earnings  Chart) 
NEM,Newmont Mining Corp (Google  Yahoo  Earnings  Chart) 
PAAS,Pan Amer Silver Cp (Google  Yahoo  Earnings  Chart) 
PVR,Penn Va Resource Partners Lp (Google  Yahoo  Earnings  Chart) 
RGLD,Royal Gold Inc (Google  Yahoo  Earnings  Chart) 
RIC,Richmont Mines Inc (Google  Yahoo  Earnings  Chart) 
SLW,Silver Wheaton Corp (Google  Yahoo  Earnings  Chart) 
SSRI,Silver Standard Resource (Google  Yahoo  Earnings  Chart) 
VGZ,Vista Gold Corp (Google  Yahoo  Earnings  Chart)