MIDDAY UPDATE 9-28
In my reports , I mentioned that things with Gold, The Miners and the FOMC Mtg weren’t clear and also really didn’t make sense. For example, I stated:
1. Didn’t everyone know the FED was raising rates? Yes- no surprise.
2. Over reaction by Gold? Yes.
3. Yet Miners didn’t sell off and stay down with Gold, so how do we read that?
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We need another day I guess, it just is NOT a clear read as to what is going on
GOLD SOLD OFF, and I showed that GG, NEM< ABX and other Miners flipped higher, as though the lows are still in place. Are things now clearing up?
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So for this update, I just want to say that after the Thursday sell off in Gold, it began to build a base after selling off last night into this morning. I posted this in the comments, and for a bullish day, we would want to see GOLD recover, and we already know that Miners did recover from their drop.
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This is GOLD NOW, and you can see that the Thursday drop has been recovering. It ‘Might” just be a back test of the break down, but that seems less likely. Lets look at a bit more in this sector…
For Miners, I mentioned a possible inverse H&S could form, using this chart
GDX NOW – ANd this looks like that inverse H&S is forming. GDX lost the 10sma, so one could wait and see if it is recovered & ADD or BUY Then. My point is that the Miners suffered no real damage with Thursdays drop, and Gold is recovering . Also…
We like to see SILVER & THE MINERS lead Gold. It is true that Gold bottomed first, but notice the GDX:GLD CHART
We see that MINERS are still leading GOLD since the SEPT low in Miners. Miners are outperforming, and that is Bullish.
So this is just a quick update to say that it appears that GOLDS sell down Thursday was more or less isolated to GOLD. Miners did recover, GG, ABX, NEM, as displayed in this mornings report, look Bullish. We needed another day to grasp what was happening, but no lows were taken out. Gold did not break the ICL , Miners hardly dropped (Some individual Miners may have though), so I would assume that the current set up in GOLD, SILVER, and THE MINERS has NOT changed .
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WHAT ABOUT OUR CONFIDENCE BOOSTER? That was PLATINUM, because it broke higher before Gold.
WE WERE USING PLATINUM FOR BULLISHNESS IN PRECIOUS METALS, and It is recovering today too.
Volume is a bit light today, but The good news is that many Miners are still near their bases or recent lows. For example: AG and MAG look nice for Silver stocks. You can see that they are still near their lows, and many others look the same way.
AG – This looks like a buy , if you can stand the wiggles, stop under $5 for example.
I was still holding a leveraged position long in Miners, but I did sell some yesterday until I could just wait & see what the big picture was looking like. I decided to add what I sold back on this morning, based on what I have written in this report. It just appears to be shake outs and wiggles in this sector near the lows again. All you can do is try to analyze and go forward from there. Right now, The LOWS HAVE NOT BEEN VIOLATED, except for maybe an individual Miner like CDE. Not sure what happened there, but it is trying to recover today too ( Shake out?). I am also holding UUUU, MJ stocks, etc too.
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I AM TRAVELLING THIS WEEKEND, SO THE BIG PICTURE REPORT MAY NOT BE OUT UNTIL SUNDAY EVENING, SO MAYBE THIS UPDATE CAN ANSWER ANY QUESTIONS ABOUT WHAT WE ARE SEEING HERE IN PRECIOUS METALS.
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ENJOY YOUR WEEKEND,
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