Wednesday Jan 10 – It’s Just A Pullback

 We will discuss the Miners and the current pullback after a quick review of various Market Sectors.

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SPX – This is often a topping candle, a reversal , but lately the SPX just drops down to the 10sma and may fill some gaps if it does.

We are due for a deeper ICL, but these markets may not drop all that deeply if they have begun their parabolic ascent. So far when they dip down,  ‘trailing stops’ aren’t even hit, it is just a normal pullback.

SOX – The SOX paused here too and may form a handle.  I am wondering if that was an ICL for the SOX in the beginning of December , since it did a shake out at the 50sma.

USD –  We have our swing low (Expected) and Gold , Silver, and the Miners are Pulling back ( Expected).  This is day 5 and it could ‘peak’ at the 50sma around day 10 or so, or remain weak and meander sideways.

WTIC –  Oil hit $63.48  ( Not expected by me).  Smart Money is not looking all that smart with extremely high shorts in the COT.  It is VERY RARE that they are positioned wrong, and I personally have only seen it 2 times in 20 years. One time was with Gold,  I think it was around 2010 if my memory is correct. Today is the inventory report,  that may say a lot about where this is going.

NATGAS BY REQUEST –  This could be a 1-2-3-4-5 move setting up. I am not trading it because NATGAS has been too radical.  UGAZ Just dropped from $81 to $60 in 3 days.

IT IS JUST A PULL BACK –  In fact, it just looks like a bull flag so far.

GOLD – Gold looks fine, a possible bull flag?

 No Joke,  I have people that seem a little panicky about our recent pull back.   What pull back? I usually expect a 38% or 50% pullback as fine.

YOU MAY NEED TO FOCUS ON THIS –  it’s just a pullback

 My reports do show that I expected a dip, but it is just a dip.

I POSTED THIS CHART YESTERDAY –  Yes, it can drop & I would be expecting that. GDXJ could tag that 200sma or the 50sma.

GDX – We have repeatedly seen a run up, a pause, and a 2nd leg higher.

I posted this yesterday for GDX –  These were in the report, so honestly, there should have been no question about what I thought we could see. Look at the dip last August in the box.  It’s just a dip and then another run higher.

GDX – So this was GDX midday.  Doesn’t it look similar to the dip after the July ICL run began, only this was a stronger run?  I honestly got emails questioning the ICL, but this is just a normal dip.  I don’t see why this would call into question the ICL.

GDX 2 scenarios –  So we could get a bounce, double top on a higher daily cycle number and then a dcl drop as shown. That shouldn’t surprise us if it happens.

GDX –  Or we could get a low and just take off higher after this pause, shaking off some of the traders.

GDXJ – GDXJ is a break out & back test and I have pointed that first break out in past reports.  Well, now we see another break out.

GDXJ – Even a prolonged period of selling into a dcl may not break this pattern.

CONCLUSION FOR MINERS

As I proof read this report this morning, I see Gold just ran up $11.  It was just a dip at this point, and it was expected. I’m trying not to over trade here, except for buying the dips.  As seen in this chart, we are in a trading range, and we only look to be at least 1/2 way to the upside target.  I feel that Miners will still go even higher in the 2nd daily cycle.

 It is the Inventory report for Oil, so we’ll see if this break out in Oil pulls back or just keeps running. Enjoy your Wednesday trading.

~ALEX

I was asked for my opinion on  GTBP and I actually drew these 3 charts for yesterdays report and forgot to load them.  GTBP  looks like a great set up,  but there is something that one ought to know….

GTBP CHART 1 of 3 – Great volume Pop, oversold, and this could run…

GTBP CHART 2 of 3 –  And it actually looks like it popped to $37,  so it can be explosive, however…

GTBP CHART 3 of 3 – It did NOT trade at $5000.  This has had very large 1:100 reverse splits ( More than one).  I believe that after those splits, it kept sinking and now this stock would really be trading at less than a penny.  If you trade it, make sure you either check their fundamentals in case they are planning to go Bankrupt, or make sure that you can lose all that you invest in it.   And yes, it could double, triple, quadruple too.  That is my opinion on GTBP. 🙂

EMMBF –  Thsi may just be a normal pull back too,  a gap fill. This was captured at 11:40 a.m.,  so we’ll have to see how this plays out.  I added to my current position on the gap fill, but you ought to know that it could also drop further to the blue line or even back test the red break out line.