This morning’s hard down move stopped right where it should have on the HUI and other indexes. This is what I call “THE SHAKEOUT MOVE”. All weak hands had plenty of time to unload their shares and feel better about themselves for getting out. As an investor think back to this mornings action and your mental state at the time. The easy thing to do was to relieve the pain that you were most likely feeling. We are just playing a game of psychological warfare. Buying the pain is alot harder to do in reality and in real time and visa versa at the top.
What you want to do now is look for the leaders that came charging back off their lows this morning. These stocks will likely be leading the next charge higher.