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I am opening up today’s report to the public. Enjoy.
Nothing has really changed since the weekend report. The markets have been choppy and difficult to record any gains over the past few days, but I do love the way the Precious Metals sector acted yesterday, so let’s take another look at what we have.
SPX – You can see that these types of sell offs into an ICL can lead to a double bottom, and Monday our General markets sold off further.
DJIA – You may want to look for something like this
It needs to at least be mentioned that after we get the ICL, the next 2 daily cycles will be very important. They can show us 1 of 2 things:
SPX – The next 2 daily cycles will reveal if this bull continues after the ICL, with higher highs and higher lows, or…
AT THIS POINT I LEAN TOWARD THIS VIEW, WITH GOLD BEGINNING A RUN HIGHER AND MARKETS CORRECTING:
SPX – The next 2 daily cycles could be a dead cat bounce, possibly even a double top here, into what will now be a bearish type correction as shown.
SPX – This is why, and it might now be Precious Metals and Commodities time to shine, while the markets correct. “They” will blame it on elections or Interest rate increases.
WTIC – On day 46 of this current daily cycle, nothing has changed with Oil. I am expecting a dcl any day now. We need a swing low and a break above the 10sma.
USD – The USD has been strong, but it is not affecting Gold greatly. Gold is holding up well.
GOLD – Gold dropped to the 10sma as support, this looks like a bull flag as mentioned
GOLD – On October , I said that I would like to see this. It would be a little more sideways consolidation to the 10sma, and then a POP.
GDXJ 11 a.m.- I Captured this and posted it in the live chat area of the website, to show that GDX & GDXJ drop yesterday was a normal one and the 10sma is being tagged. We would look for a reversal.
GDXJ MIDDAY– We were getting that reversal and this held into the close, so this is a low risk buy if you use the 10sma as a stop now.
I HAVE BEEN POINTING OUT BULLISH ACTION IN THE MINERS. LET’S JUST TAKE A LOOK AT A FEW…
GORO #1 – On Oct 18 – I pointed out that the 10sma is a target that Bull runs dip too.
GORO #2 – I said to add at this area is normal and then we watch for the support reversal to hold
GORO #3 – Yesterday GORO dipped and recovered again, this is bullish action
AG – I pointed out AG as a buy in the weekend report. It dropped and recovered the 10sma
AU – 10 sma Bull Flag
BTG – 10 sma, Bull Flag
So Gold & The Miners continue to act correctly, we have been on a Buy & Hold for weeks, expecting that an ICL is in place. GOLD & MINERS are acting correctly.
EDIT: GOLD This morning – trying to break from the consolidation. This is a 2 hr chart, it is the Bull Flag that you saw on the Gold charts, so…
GOLD – On October 18, I said that we could see this. It would be a little more sideways to the 10sma, and then a POP.
GOLD IS DOING JUST THAT THIS MORNING – VERY NICE. NOTICE THAT THE 50 SMA HAS CURLED UPWARD
GOLD LOOKS GOOD THIS MORNING , AND THE MINERS HAVE BACK TESTED THEIR 10 SMA, ENJOY YOUR TUESDAY TRADING!
CLF- I mentioned that this may be an earnings shake out, since it crashed and recovered at the 50sma
CLF- It recovered the 50sma yesterday
SBLK – Shippers exploded yesterday with DCIX, SINO and others running up as much as 40%. SBLK and DSX look like Buy opportunities that have not run up yet. You could buy this on the 200sma and use that as a stop. DSX is under the 50sma, you could buy if it breaks above it.
The Medical Marijuana Sector has been an excellent opportunity to make fast gains since August. With Canada announcing a country wide legalization of marijuana sales in October, and some states in the US doing the same, Revenues have been growing rapidly in many of these companies. That said, I believe we may now be seeing “Buy the rumor, Sell the news”. I think this sector has been eagerly scooped up over the past several weeks and may now need to sell off and consolidate those gains. Let’s take a look at the MJ ETF as an example.
MJ – I am not in a hurry to buy the next bounce, because in the past I have seen consolidations last for months. I try to view it in my head as daily cycles that will make new lows, not new highs. If ( or when) that changes, I will recognize it. This is not ‘Bearish’, all Bulls need a consolidation type rest too. See 5 yr charts of AMZN or GOOG for proof of that.
ACBFF #1 – Last week I had this chart as a warning Oct 19. ACBFF is going to be listed today on the NYSE Tuesday Oct 23. IS THAT ALONE A REASON TO BUY? Or has the Run higher exhausted buying & it becomes a sell the news too?
ACBFF #2 – I want to view it like this to avoid getting sucked in eagerly on any bounce, only to find that it needs more time too. I am personally going to be recommend patience with a focus more on Miners – they are acting correctly.