With the gloomy sentiment for precious metals and mining stocks abounding, Frank Zorilla of ZorTrades.com goes bargain hunting in case there’s a bounce.

I have mining on my mind today, I’m looking to trade them on the long side if they show any sort of strength (every dog has his day). And I’m hoping that the sentiment for this post goes along the line of; “here is another douche trying to pick a bottom on the mining stocks.”

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Four instances is not enough to take any historical data seriously, but how many times have you seen a non-leveraged ETF go down 20% in two weeks? It has happened four times on GDX and here are the results five days later:

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Here is a sample size with 30 trades of when the GDXJ has gone down over 20% in month:

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Sentiment, as well as the outlook for mining stocks remain bearish, and the correction is probably not over.

By Frank Zorilla of ZorTrades.com