Buy the Miners Not the Gold

After turning in its first losing year in 2013 in a long time, many have been wondering where gold’s bottom might be as MoneyShow’s Tom Aspray takes a technical look to determine whether or not now is a good time to buy.
The series of earning’s hits and misses has captured the focus of investors as has the continuing divergence between the Dow Industrials and the Nasdaq 100. The SPDR Dow Jones Industrials (DIA) is down 0.3%, so far this week, while the PowerShares QQQ Trust (QQQ) is up just over 1%.
These divergences are also evident in the market internals as while the NYSE Advance/Decline and Nasdaq Advance/Decline lines have made further new highs, the Dow A/D line has not. The volume analysis of the leading indices also looks strong and together they favor an eventual upside resolution of the trading ranges.
Following the miserable 2013 performance of gold and the gold miners, their recent gains have gotten a bit more attention, but most investors have been burnt by gold’s drop in the last quarter of 2013 as forecasted in early November’s Gold: Bull Trap Ready to Close as the volume analysis led prices lower.  (more)

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