MESMERZING !
It gets mesmerizing & hypnotic if you stare at it too long. Yes, the picture above, but also the Metals and miners markets. I wanted to just pop in intra-day and address a few thoughts, I am getting some “Concerns” about Miners dropping even lower here. Yes, GDX is lower and Miners look weak, but in a drop to a daily cycle low…that is what fools everyone. Let me show you 3 charts that can help us to gain confidence.
Look at GDX 2008 and look at it closely vs the chart below it , which is GDX right now.
1. Both had a slam after lows and recovery
2. Then a drift to those reversal lows
3. These charts look very similar, showing that GDX is acting normal and yes, it could POSSIBLY even go lower!
I look at the GDXJ chart 5 minute ( sorry – labeled wrong on chart) as I write and it looks ready to POP higher however, It is is a pattern that is bullish, but thats just bullish for a 5 minute chart. so short term we might reverse higher for a bit. THAT doesn’t mean BUY BUY BUY if it does. A true reversal will need to prove itself. This is GDX 5 minute chart (Click it)
Lastly, I got an email about RIC. I will answer the question here, so everyone can see the same thing. I think RIC remains strong and I would add on this pullback. It may or May Not pull all the way back to the break out again, so one could “layer in” , maybe add a little more at the 20sma. If it makes it to the blue line of “Support” , some may want to add there with a loose stop . I like this stock so I wouldnt want to lose position at the $2.60 area).
WELL WELL WELL…as I was writing GOLD popped a bit and Miners pulled a reversal. Interesting. Here is what we see now
This write up was to help calm the nerves of some who sent me nervous emails. I totally understand that …when GDX / GDXJ are dropping and it looks bearish. My first charts were to build confidence. No Doubt the reversal today (Especially if it sticks) will add confidence that the floor isnt about to drop out. Wait for confirmation if you need to . I added on this reversal HERE & NOW .
IF it closes like this and looks like a daily cycle low, I will post a few Miners tomorrow that look to be set up properly for buying. I need to post this quickly, best wishes (Yes, I am adding here, but its safer above the 50sma if you cant babysit positions)
ALEX
Alex, thanks for the update – appreciated.
Ur welcome. That was a fast turn. AND , It looks like a bullish move might continue on the GDX 5 minute chart . A bull flag is forming (Click to open)
WOW, what a nice DT on NUGT today. Ya gotta keep yer eye on the charts and keep your confidence. Luck also is important 🙂
I like what you observed in the first part ; – ) Seems that Hard work pays off better then Luck . Glad you caught a nice trade, I am thinking we may see more upside. Follow through would be nice.
My apologies to readers. Small mistake on my part in the report …this was GDXJ (I said GDX 5 minute). MAybe you all noticed by price of $23.50. Thanks
Alex- thoughts on the reversal today? I assume we don’t love Gdx closing so far off the highs with some of the majors actually red on day. Would u think this is beginning of 2nd daily cycle? Ty
Agree with you, Rm – definitely better than where it was after this morning’s action, but the move in physical gold was actually much stronger. I’m personally going to add until we can really tell it’s in the next daily cycle. Hopefully, more clues tomorrow. Also, silver was lagging. Could have just been a quick GLD reaction to the poor day the market indexes had. If they reverse back up, gold could lose this one day move. I’m sure Alex will have more ideas for us tomorrow morning!
Alex, I took profit around 3:30 to 4 on many of my gold stocks. I think the dcl is still ahead of us in the next few days.
50-day is now down about 19.86 or so – could get there quick with one more solid move up!
I did not like the Miyagi sticks projecting gdx back down 18.25