Thursday, June 22, 2006
The broader US market is still churning, but it's time to take another look at Europe and the metals markets. European stocks beaten down after the emerging market crash has now produced a large number of stocks that have just pulled back to their long term up trends. The accumulation apparent in this market is quite strong and the strong European trend should be ready to resume. Gold and other metals have been hit harder than most but the majority of mining stocks showed accumulation even as they retraced as much as 50% of their recent gains. This shows that there is a lot of confidence in this market by smart money who has been using the gold crash to accumulate for their longer term horizons. It's a good idea to start getting aggressive with this sector as it has a lot of promise over the next few years and right now the miners are relatively cheap.