Resource stocks forming new uptrends

Oversold miners rebounded impressively in 2012, a sign that there is plenty of cash waiting on the sidelines to continue supporting a strong rally.The end of 2011 and the beginning of 2012 greeted investors with spooky market stories to scare investors. A prominent cartoon in the Wall St. Journal depicted a pretty lady shrieking, “The DOW Sank 17%”. Another balloon read “The US Loses Its AAA Rating”. She is screaming, “Who Will Fix Europe?” Another caption reads, “$71 Billion Yanked From U.S. Stock Mutual Funds”. Another hysterical cry exclaims, “I Want Treasuries!” As if that cartoon wasn't enough to scare readers, the headline read, “Spooked Investors Seek Safety: Volatile Quarter Leaves Market Victims Wondering What Is Next”. Another ghastly pronouncement we wrote in early October to the surprise of many was, “Beware of Stock Market Rallies Ahead”. There was altogether too much gallows talk in circulation when we sent out the above chart on the S&P500 (NYSE: SPY, Stock Forum). We were brief and to the point and expected a potent rally especially in our oversold uranium (NYSE: URA, Stock Forum) and rare earth miners (NYSE: REMX, Stock Forum). In early October, we noticed positive signals on our indicators suggesting that an impressive rally was in the offing especially in our deeply oversold industrial metal miners (NYSE: DBC, Stock Forum). Continue reading this article here.