Here is the $BPGDM chart.

This chart shows what percent of gold mining stocks are on a buy signal on a point and figure chart system.

I am not bullish on $GOLD due to the $USD strength.

But the indicators are saying buy the gold miners – or at least trade the index.

Well, you can see it flipped the parabolic SARS on the chart today. This would be an entry signal.

If you wanted to do this trade, you could buy the HUG.TO which is an ETF on gold miners. You could also buy the XGD.TO.

Lots of other things to examine, but perhaps this GOLD miners move has legs.

Good Trading,

Greg Schnell, CMT

Risk correlated assets continued to make gains in Asian session due to the optimism sprung from yesterdays well received Spanish and Italian auctions. EURUSD traded up to 1.2879 while AUDUSD after a brief dip charged to 1.0362. Asia’s regional indices were broadly higher with the Nikkei up 1.36% and Hang Seng 0.57% yet shanghai failed to contribute to the feel good atmosphere falling -1.34%….

Investors overlooked upbeat profits from India’s tech bellwether and focused in on the weak guidance given by the Infosys management.