There is a chart of the GDX relative to the Price of Gold. This is why some will say that the miners are ‘weak relative to the price of the metal.' And they are. They can get even cheaper, and the underlying metal can also get ‘cheaper.'

Sentiment is obviously at a negative extreme, and some of the chortling from the opinion vendors is disheartening to those who take that sort of thing seriously. But it is what it is, and we must play the cards as they fall.

Let's see how gold can trade through the advance GDP number this week and the Non-Farm Payrolls report next week.

I am becoming more aware of the mining sector at this point IF I decide to play a bounce in the precious metals and IF I do not think that the equity market will actually crash, rather than swing back and forth in the jigging for spec fishes that the HFT insiders are wont to do these days.

I have not owned a mining stock in recent memory except as a trade. I am now getting more serious about that sort of thing, with the appropriate caution about getting in too early. I would rather miss the first ten percent of a real rally than come in too early and try to catch ‘the bottom.'

The ‘deliverable' or registered gold at the Comex has fallen to a surprisingly low level of 378,146 ounces. This would be shocking in a honest market given the leverage involved.  But since we are dealing with The Bucket Shop it just bears watching.

Have a pleasant evening.