Stock Online TraderBulls & Bears Make Money, Pigs Get Slaughtered…Let Us Not Be That Pig…

I used the market panic to picks up gold miner Kinross Gold (KGC) again at 13.88$. With KGC entering oversold levels, it might be a good swing trade. Gold is hovering around 800 level and holds a key resistance level. 1 month chart shows KGC has dropped 21%. I might be bit early to jump in, but I believe the odds of profiting from this trade are higher.

Recently KGC won the shareholder approval of bidding for Aurelian Resources and will take control of the rich Fruta del Norte gold deposit in Ecuador.

Ecuador froze all mining earlier this year while it rewrites its mining law, a move that stripped more than 50 percent from Aurelian’s share price and allowed Kinross to get it for far less than it might have cost. Many Aurelian shareholders complained the company was selling out at too low a price.

This might turn out as a good investment in the long haul.

Is this an Institutional Investor Warning?

You know the reality … Institutional Investors have the directional control over the markets because they are responsible for 50% to 70%+ of the stock market’s volume on any given day.

Above is a chart showing the “top core holdings index” held by the large Institutional Investors. Take a quick look at it … what do you see?

Note the MACD pattern that occurred last December which was followed by a sizeable downside move in the stock market.

Now, look at the current MACD pattern. Looks familiar doesn’t it?

The message it sends is a Warning that investors should be cautious and on the alert for another possible downside move on the MACD which would correlate with another downside leg in the market.

At the close yesterday, the MACD hadn’t yet signaled such a down move, but a “CAUTION Alert” is definitely warranted. The current pattern doesn’t guarantee that the next MACD trend will be a down move, but it does say that we are at an important pivot point where an important change is not very far away.

(Source: StockTiming)