This week in the subscriber-only DecisionPoint Diamond Mine trading room Thursday morning, I found two industry groups to watch. Interestingly, one of those groups I had brought to the table last Friday for my DP Diamonds subscribers and, on Monday, I brought it to the attention of the DP Alert subscribers. That industry group is Coal. I've provided my synopsis from Monday with some added commentary for you.
The second industry group is Gold Miners. DP Alert subscribers already knew about Gold Miners (GDX) heating up. I cover them in every DP Alert report every market day. This is the only industry group that we have "under the hood" indicators for, so, with that expanded knowledge, I knew that this group was improving quickly.
Let's start with Coal.
Last Friday, I noticed that Coal was beginning to bottom on the 200-EMA. The PMO is now rising on a crossover BUY signal. Stochastics are rising and have hit bullish territory above 80. The RSI is positive; you can see that the relative strength line is beginning to rise. It didn't have a great day, but the indicators are still very positive and price, though it pulled back, is still above the 50-EMA.
There are three coal stocks that I have on my watch list: Arch Coal (ARCH), Alpha Metallurgical Resources (AMR) and Warrior Met Coal (HCC). They all have very similar formations to the Dow Jones US Coal Total Stock Market Index ($DWCCOA).
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Next up is Gold Miners (GDX):
Today, price closed above the 50-EMA. The PMO triggered a crossover BUY signal today as well. What has impressed me most is the upward thrust in participation of stocks > 20/50-EMAs. Those readings are well above the Silver Cross Index (SCI) reading, which gives Gold Miners a very bullish bias going into next week. The RSI is now in positive territory. Stochastics are now above 80 and still rising strongly.
Gold Miners that are on my watch list: IAMGOLD (IAG), SSR Mining (SSRM), Newmont Corp (NEM) and Yamana Gold (AUY). Please note that IAG and AUY are priced very low, so position size wisely.
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Check out the recording from Monday 12/20:
Topic: DecisionPoint Trading Room
Start Time: Dec 20, 2021 09:00 AM
Meeting Recording Link.
Access Passcode: December@20
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--Erin Swenlin
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