|
Well not yet but it is possibly only a matter of time. Let’s go straight to the chart and see what we can glean.
Chart 1
click chart for more detail
I have turned the Elliott inside out, back to front – you name it, but I cannot find a chart that tells me we are near a bursting of the bubble – but it is of course possible a bubble is in formation. But what stage it is at, in its formation, we cannot be sure but I would hazard a view it is only at an early stage. I know the media is touting a bubble is in the making and seek quotes from analysts that are of that view. This sells newspapers.
There is however every chance we might see individual mining stocks fall apart but one swallow does not a summer make.
So back to the chart. What we are seeing now for the mining sector is a retreat – a mild pullback. A routine dip before we see a new high. This is perfectly normal and there is good money to be made in the sector without a huge risk at this point.
Enjoy the ride
Tom Scollon
Chief Analyst
|