Public Report – Precious Metals Activity
When I drew this chart in December, I was pointing out that I expected the Markets to be topping and Precious metals to possibly be bottoming. Notice how the 2000 top in the SPX coincided with Miners bottoming. Also notice how much that 2000 top looked like the markets in December.
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Well, we certainly did see the markets drop though out almost all of January.
We had a 6 week believable rally out of the summer crash that got the Bulls long again. I expect that we may something similar now. But can we say that Miners bottomed, at least temporarily?
Lets look at Precious Metals
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GOLD & MINERS
A week ago I pointed out the Shake out reversals that you see at lows.By selling the Miners off below the July and Sept lows, you run the stops of 6 months of trades! The volume was so light, that there was no follow through. It was a buy.
I checked social media this weekend and while some are bullish, I also see quite a few people saying ” The strong dollar is back, I am shorting miners.” or “I’m Buying Dust.” That is good. We want people to think that this move is not real and we want shorts to pile in ( And cover as it continues higher).
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This chart was one of my 2 weekend reports published this weekend
GDX WKLY – Shake out and we are pressing against a down trend line. so early in the ICL my middle indicator is already at the zero line. Bullish in my opinion. Also oversold on the weekly stochastics. I would NOT Be shorting this, unless it was just a quick trade.
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I have already been pointing out that quite a few Miners have already bottomed , and this goes unnoticed by the bears. Lets take a look at a few charts.
Nova Gold actually bottomed 2 1/2 yrs ago, during the bear mkt sell off.
HMY GOLD looked like it bottomed last November. ( I wanted to buy the pullback, but I actually did not buy this one, it hardly pulled back ).
HMY JAN 26- Is this bearish? It hit $2 and is consolidating.
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MUX today – Junior Miner MUX has very strong volume today. Its actually up over 8% now as I write.
I have been discussing how this base shows MUX bottoming in August of last yr. It has almost doubled since then, when Gold broke down to new lows in December. This was my chart as of last Tuesday, it is up to $1.33 as I write, with solid volume.
Silver broke down to new lows in December 2015, but according to this weekly chart of GPL. It seems to have bottomed in the summer of 2015 too, and it has doubled and pulled back a bit now.
It’s not just the Juniors that are putting in Bottoms ( Temporary or long term). Look at ABX and NEM. Large components of GDX.
ABX is up over 50% from last Summer while Gold made new lows.
NEM WKLY – Bottomed last August too and has formed a 5 month base.
SO are we seeing a big change taking place? Didnt Miners often get crushed on a day when Gold was down? Gold would drop $15 and Miners would be down 7%. Now we see Gold made new lows in December and many Miners were higher? This change is possibly taking place so slowly that many are missing it? That is what I’ve been discussing in past reports and in the 2 weekend reports released this weekend. If what I have been pointing out since last summer continues to play out, there will be huge profits to make in certain sectors. As mentioned, some Miners have already doubled and tripled, and the move may just be starting. 
Thanks for being here and happy trading.
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