On Jan. 12, President Barack Obama presented his final State of the Union Address. 

After seven years in office, Obama has said his final 12 months would feature efforts to curb gun violence. As he outlined his recent executive actions, an empty chair sat in the Congressional balcony – a symbol and reminder of Americans who have lost their lives to gun violence.  

A week prior, his Administration released a list of executive orders aimed at curbing gun violence, including the expansion of background checks for would-be arms buyers and sellers.

In any other industry where regulations may limit access to a consumer good, that sector’s manufacturing stocks would likely suffer a decline. But the gun sector is unlike any other.

…read more HERE

 ‘Gloom, Boom & Doom Report’ Publisher Marc Faber provides insight into the global market selloff. 

“It could be worse… what we’re seeing here is just an appetizer of something larger”

“My sense is that many policies that were implemented- in particular zero interest rates and more recently negative interest rates- are rather negative for asset markets than positive,” he explained. “They create a lot of uncertainty in investors’ minds and we have statistics on all the countries that have introduced negative interest rates. In all these countries actually the savings rate went up.”

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The Canadian market broke its long term downward trend this week which means there are stocks starting to reverse the ugly cycle that they have been in for some time. This week, I ran the Stockscores Simple Canada market scan, seeking out charts that are turning around after a long period of weakness. Here are two worth considering:

1. T.LTS
T.LTS broke up from a rising bottom this week after breaking its downward trend, moving up through resistance with stronger than normal volume. Good potential as long as the commodity bounce continues. Support at $0.33.

….read the entire commentary HERE

Two weeks ago, regarding the miners we wrote:

If it (GDXJ) surpasses its 80-week moving average then its next target is $27-$28. Meanwhile, GDX is holding above previous resistance at $18. Its next strong resistance targets are $21 and $22. 

Earlier today GDX and GDXJ came within pennies of $21 and $29 respectively while Gold touched $1280 before reversing. While Gold and gold stocks could continue a bit higher, their rebound may have ended Friday morning. 

A weekly candle chart of GDXJ and GDX is below. The miners over the past six weeks have formed six white candles and taken out their 80-week moving averages, which contained the strongest rallies during the bear market. However, the miners formed a nasty reversal on Friday after touching resistance earlier in the day. The miners could, at the least, test their 80-week moving averages which are now support.   

GDXJ, GDX Weekly Candles

The recent rebound was similar to that from the October 2008 lows. Then, GDX rebounded 69% (from low tick to high tick) in five weeks while over the past six weeks GDX surged 68%. Then, GDX corrected 20%. GDX also corrected 29% during that rebound. In recent weeks GDX has not corrected more than 10%. It would not be unreasonable for GDX to correct 20% or even 25% from Friday’s high.

Meanwhile, Gold reversed course after reaching a confluence of resistance which includes the 40-month moving average. There remains a small chance that Gold could test $1300/oz before correcting. Gold has support at $1240/oz and $1200/oz.

The bearish reversal at resistance coupled with history makes a strong argument that gold stocks could correct recent gains in the days and weeks ahead. A 20% decline would be normal and reasonable given the context. For those of us waiting for a correction, it could be coming. The month of March may provide the best buying opportunity in the miners since December 2015. 

Consider learning more about our premium service including our favorite junior miners which we expect to outperform in 2016.

Trader Training – Some Ways to Fix Your Problems
Stock trading is simple, but not easy. As long as we are normal, emotional human beings, we will make mistakes in the application of our trading plans. Countless hours can be spent developing the rules for a profitable trading strategy but, unless there is absolute discipline in applying that strategy, results can be poor.

In This Week’s Issue:

– Stockscores’ Market Minutes Video – How Much Stock to Buy
– Stockscores Trader Training – Some Ways to Fix Your Problems
– Stock Features of the Week – Long Term Turnarounds

….read more HERE