Based on this morning's action, bears seem in control. Gold broke down the $1,650 support level, and Silver broke down $31. My sentiment indicators for gold and silver are still very negative and have not shown any improvement in this past week, except for the goldminer index, which improved somewhat. The open interest in call options have improved, although puts are still ahead. The chart however looks terrible. The best time to buy something is when nobody wants it, so if this mornings action is halted, and during the day we move on with a nice bounce up, I am going to add to some positions, while staying with cash for 50%. Stocks that lagged down in the past 5 weeks and are among my favorites to add, are Golden Minerals, Sabina Gold and Silver, Balmoral Resources and Gran Colombia Gold.
Sandstorm is still moving within the triangle I pointed out a few times. It is also moving now under its 20 and 50 days averages. See also how the money flow indicator is moving towards negative territory, which is another bad sign. The upcoming Q4 results perhaps can turn things upside down. If not, Sandstorm will probably move along the way with gold.