Goldcorp, Inc. (USA) (GG)

TheGarcipian (99.14) Submitted: 3/3/2009 9:32:13 PM : Start Price: $28.45 GG Score: -9.35

This pick is one of a collection of UltraShorts and 3X Bear ETFs that are all due for a short but (hopefully) profitable rebound (10%?). In looking at a combination of the Slow Stochastics, the Volatility Index ($VIX) and the Daily Sentiment Index (DSI, courtesy of GoodVibe's blog posts) for this pick and others, I think we'll see a local minima established for this pick this week or next.

To me, it's clear from the Slow Stochastics of some big ETFs that they are due for a turn-around. Take a look at ERY, BGZ, SFK, and SJF, to name a few. All are above the 80% "overbought" line, some above the 90% line, meaning they are more likely to fall, and soon. The "Williams%R" indicator, which leads the Slow Stochs by a few days, is showing even greater "overbought" tendencies, and in some cases is starting to head back down. In general, this is good news for a market shocked by dropping below the 7000 psychological mark. And if investing for the masses is anything, it's psychological. So, I think we'll see a rally starting this week and pushing into next week. But I don't expect it to last long -- maybe to St. Patty's Day if we're lucky, perhaps a little longer.

Finally, let me be absolutely clear: I still believe we are definitely NOT at THE bottom, but only at a local minima. We have at least another 20% to fall:
http://caps.fool.com/Blogs/ViewPost.aspx?bpid=137397&t=01009471911616523983

If you do not have time to watch your purchases over the next 2-3 weeks, don't play the game. I have a feeling it's going to be very volatile. Good luck!