At the low yesterday miners had already given back 62% of the second leg gains, and we are not done with the Intermediate Cycle Low yet. The final Intermediate Cycle Low isn’t due until late June or early July. This is why it wasn’t critical to chase the second leg, one was going to get a second shot at it anyway.

Unfortunately I suspect too many traders listened to the pie in the sky nonsense that passes as analysis and bought at the top and are now suffering a 10% draw down that they didn’t need to weather, and it’s going to get worse before the Intermediate Cycle Low is finished.

Gary Savage
The Smart Money Tracker

Gary Savage authors the Smart Money Tracker and daily financial newsletter tracking the stock & commodity markets with special emphasis on the precious metals market.

Disclaimer: The above is a matter of opinion provided for general information purposes only and is not intended as investment advice. Information and analysis above are derived from sources and utilising methods believed to be reliable, but we cannot accept responsibility for any losses you may incur as a result of this analysis. Individuals should consult with their personal financial advisors.

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