Friday, March 8, 2013

Time for some more self immolation on this Lenten Friday, yes GDX is back in the top 10 at 7th place.  The Market Vectors Gold Miners Fund had been scoring at the top for months but lately it’s been living underground and eating from a can.  It got as low as 92nd place yesterday but shot up 85 places overnight.  We don’t run away from what we don’t understand, we know Quant moves in mysterious ways.

The fund has been slipping and sliding down through most of 2013 after marking a death cross in January.  At 89.8 today, the Fundamental Score has been better than alright, and as the share price has taken a dive its sentiment score remains elevated at 80.1. Global Theme and Quality Scores are OK in the 60s and stable.  It’s the technical score that is most mysterious.  After hitting the ground at 10 three days ago it has risen to a still poor 45.5 but a rise whose pale light has lit up Quant’s room.  The fund hit a new low on Wednesday morning but rose for the rest of the day and held most of those gains yesterday.  That has lifted its intermediate term technical score from a horrible 0.9 to 36.1 today. The short term technicals have risen from 4.4 to 44 and long term rose from 18 to 51.8.  Nothing special about those levels but the deltas are notable.  The technical scores are among Quant’s more complex computations involving a series of figures for each one which are then weighted in a proprietary way to get today’s overall 45.5 technical score.

We do a lot of bragging in this space about Quant’s performance and it’s been stellar even with GDX in the top ranks lately, so let’s call it the exception that proves the rule.  We hope this one will eventually take a walk on the moon but like Bono says, if you want to kiss the sky better learn how to kneel.  We understand if you want to watch GDX and its higher than average 5.46 Risk Rating from the sidelines but Quant says it’s alright and its 9.77 Reward Rating will eventually lift our days and light up our nights.  Yes, she moves in mysterious ways.  We need to go shovel the snow that’s covering Wall Street this morning, thanks for reading and have a nice weekend. 

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