Today's action did give me a similar thought. I went short the mining stocks last week, added to that on Monday and went way overboard yesterday morning. I closed most of my short positions yesterday afternoon, but maintain my original short position. I think the fast stochastic, the slow stochastic and MACD all indicate there is some more downside in the HUI. But certainly the idea that this current action is a consolidation rather than a reversal is on the table. A Fall rally in precious metals, now that is something to think about. Good analysis and thank you for sharing.
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Thanks for the comment. Friday and Monday were great days to short the miners. I'm in two minds about this and can see an argument for both bullish and bearish. But have to test out the upside after today's signals. Check out the potential inverse head & shoulders in the comments (forgot to include that in my original post). That's also something that made me want to try for a further move in silver.
I absolutely can see that. I am also of two minds on this, I was of one mind, short, until yesterday's action which gave me pause. The greatest thing about trading is I do not have to be a Bear or a Bull, I can be what the market tells me to be.
Exactly!