sundate36: Great article, Chris, thanks!

Christopher Wallace: Thanks Sundate, I appreciate the feedback. I doubt these extremes can hold up too much longer.

leliov: $GDXJ I agree http://bit.ly/XOHryl

Christopher Wallace: Thx leliov. Junior gold now trading at $28/oz gold in the ground (EV/reserves). http://bit.ly/YKjhkB

The Hammer: PMs have bottomed imo

sundate36: $GDX just made a U-turn?

The Hammer: hopefully a a move down by HFTs give chance to add more.

The Hammer: added in neg weakness mostly large cap miners

sundate36: It actually wouldn't surprise me if miners stage a huge rally and take everyone by surprise.

sundate36: I mean, look at $TRQ today. I'm long $HMY and $TRQ.

The Hammer: just added to some of larger cap now time to sit and wait

Christopher Wallace: $TRQ is for the very brave given the actions of the Mongolian government. But I agree with u about potential for a surprise rally.

sundate36: Yes, Chris, there's the country risk with $TRQ. Maybe I'm naive, but I view it as shuffling of paper back and forth. My position is small.

sundate36: Anyway, I think $TRQ should renegotiate; the terms of the contract aren't fair. Given how much $$ is invested, this will be resolved, imho.

The Hammer: sundate why bother when across the board miners have been pounded?

Christopher Wallace: I know one of their former direcotrs very well.. I saw how much grief the Mongol gov put him through. Not easy to renegotiate with them.

The Hammer: miners did sharp reversal on weakness. it is not easy to buy at bottom

The Hammer: miners remain at a depression sentiment. how long could it stay at these levels?

The Hammer: the pm mining trade has become a very quiet one. good news.

sundate36: Here's a guy who had a series of articles on metals. Very interesting, imo. http://seekingalpha.com/a/r1oj

The Hammer: dollar has continued to power ahead. Norway sovereign fund reducing positions in pounds, dollars yen and euro money printing addict types

The Hammer: hopefully we are starting the sharp bounce off the lows

Christopher Wallace: I think we are....adding a little to miners and some juniors.

The Hammer: know this has not played out yet any other sector worth looking at or is it sds time?

sundate36: Is the sentiment improving?

The Hammer: rsi has turned up. have to wait on bullish index

Christopher Wallace: I have not seen any new sentiment numbers. But price action appears to have stopped going down.

sundate36: Well, GDX tried to retest the recent lows but failed for now. I suppose it's a good sign. Wouldn't it be funny if the market corrects ...

sundate36: ...next week but miners go up?

Christopher Wallace: I think that is probably the case.

The Hammer: gold needs to strongly break 1600 for miners to bounce hard.

sundate36: Hammer - that is the general thinking, BUT if you look closely at the demand for gold it actually balances out with price, if price ...

sundate36: decreases demand for jewelry increases and so compensates for decreases in other gold-related assets ...

sundate36: here's a link to the paper http://bit.ly/10RwE6b (via contributor 'Inflation Trader'.

sundate36: So, in theory, share price for miners shouldn't be related to price of gold (e.g. see $HMY and fluctuations in its price at various cycles).

sundate36: So, it should help miners if gold goes up but I actually don't think it should be the only factor...We'll see.

sundate36: Lol - gold is up on Cyprus. Miners next?

The Hammer: alot more people thinking now where to safely put some of their wealth, a decisive move above 1,600 gold may help the miners

Christopher Wallace: Gold miners bullish % index has turned up....finally. Back up the truck. http://bit.ly/15xc2Rl

sundate36: Chris - many thanks for the update! It's interesting that there has been no immediate retest of the recent lows...

Christopher Wallace: While anything can happen, there has been a tradeable rally each time BPI turned up after going below 30%.

Christopher Wallace: Given how low it went, an 18 month bear market and record low miner/gold price ratios, I expect a decent rally from here. Let's hope!

Christopher Wallace: Todays' action should surely turn in a lower BPI number when computed after the close. I have to reduce exposure when I am proven wrong.

The Hammer: New lows on the miners. Pretty aggressive drop. When u say reduce exposure is this by what %? U think the bpi can stay under 10 for long?

Christopher Wallace: All good but tough questions. I took 30% off the table today. I don't think it can stay under 10% for long. But there are only 3 other...

Christopher Wallace: ....readings available: 6.67%, 3.33% and 0%. Any sustained selling would result in a 0% reading, a statistical outlier for sure.

Christopher Wallace: I have to save some dry powder for that eventuality/possibility. Trying to stay disciplined.

sundate36: Chris - today may have been that final 'wash' that we needed to establish an (interim?) bottom...

Christopher Wallace: I am certainly hoping that is the case.

Christopher Wallace: Bullish % Index for gold miners back down to 3.3%.

The Hammer: Miners hitting new lows but mgts seem to be changing the fundamental way they manage the businesses. why it took so long to figure it out

The Hammer: any sentiment reading on gold? it is getting hit again today. 0% BP a possibility. so far a losing trade.

Christopher Wallace: I have not seen anything new from Hulbert. Will report back here if I find anything.

sundate36: I added $HMY at 5.72. I think that the selling in $GDX is way overdone ...

sundate36: ... it's like there's no tomorrow for gold miners. Does anyone follow Tom DeMark's counts on $GDX?