Archive for category: Public

Are you ready to make a leap of faith? A buying opportunity is fast approaching in MINERS, whether it looks like they are crashing down or not.   Let me show you what I am seeing. 

 

 

In July I  showed that I expected a drop in the USD to the lower support line.  This would cause a rally in Gold.

USD –   We just had out drop in the Dollar as shown in this chart.  Gold and Miners did put in a nice rally.   Today the dollar is bouncing  ( Up over 1.10 to 94.62) and Gold is pulling back.

I expect a second leg up in the precious metals to be greater than the first. Lets review …

 

 

GOLD, SILVER, MINERS

 

 

GOLD – Gold acted the way it should at this point.  It rallied about $100 as the dollar dropped. Now the dollar is bouncing and we see Gold pulling back. This is normal activity

 

I expected this drop .  Here are 2 reminder charts from the weekend premium report.  Gold can simply drop to the $1130 area and find its support and form a Daily Cycle low  (DCL) .  It should then rise to new highs.

 

Gold was at resistance and the fib 61.8%  number, so I understand why it didn’t just burst higher Monday. Pullback to $1133 is very normal. See fib lines.

I used this silver chart this weekend to show how silver acts in the first daily cycle, not always participating in  GOLDs initial rally until the 2nd leg higher. Then it explodes!  Are you ready?

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Silver got dropped Monday.  Silver looks horrible at the lows in every case in the chart above, right?  Monday was high volume and looks ugly too .   I confess that when I draw this chart, it is with a bit of bullish Bias,  just knowing how it acts near lows. Silver can still go lower along that blue trend line.

 

EVERYONE IS TALKING ABOUT THE MINERS.  Disappointing?   YES!  We bought the strong run off of the lows. The dollar crashed and with Gold at highs and our Miners took a nose dive? I didnt sell the top, just in case the pull back was more of a sideways move.  I have sold some since then, but I am looking to re-enter very soon.

GDXJ Monday – We dropped fast , but it looks similar to the March drop.  From the lows to the highs, we then fell 61.8%  (yellow arrows).   As Gold pulls back,  I dont expect the lows in GDX / GDXJ to be broken, but if they are, it is likely just a stop run.

 

Now I want to show you 3 charts of GDX lows ( ICL) where price went up and dropped sharply like we see now. At least it helps to see how things played out then.

GDX 2008 –  THE Bear Mkt Lows of October.  Notice how price dipped back down to the bottom in Nov.    Is that what we are seeing now in GDX, before the next move higher?

GDX Nov 2014 – Who can forget this dip back to the lows?  Frustrating!  Notice the High Volume plunge that came out of nowhere ( 1st red arrow).  It then bounced higher, and dropped back down again.  THAT could be what we are seeing now too, right before a strong 2nd move higher.

 

July 2012-  GDX went sideways along the bottom  like GDX just did.  It also popped higher to the 50sma and quickly dropped right back down. See the high volume drop like we had Monday  (red arrows) . The chart should say that we didn’t get the reversal  at the close. ( Typo)

Let me show you 2 more important charts. 

The purpose of this is to point out that at the Nov Lows and even the March Lows,  some Miners that make up a big part of GDX  bottomed, rallied , and gave it all up just like we see now.    THEN when everyone gave up,   they rocketed higher.   The 2nd daily cycle can be very profitable.

GG – Last November – December.   BOGUS 1st daily cycle!   GG rallied and then gave it all up. Notice that the next run higher was great.

NEM –  It also Rallied in Nov. and then dropped all the way back in december (It even broke them).  Next NEM rocketed higher in Dec-Feb.  At the March lows,  NEM also lingered 1 month at the lows,  then Rocketed higher!  I expect that again.

 

  SO I wanted to highlight the reason for Hope here with our Miners.  The second daily cycle is coming and in the past it was a great time to make great %-Gains with the miners. We can make good money when its a little clearer that these miners have finally bottomed on their pullback.  Here at  Chartfreak, I’ve been monitoring this closely in the premium reports. For a small monthly price, you can join us . If not, I will still be posting here from time to time with public updates. You can sign up for free email alerts, so you will know when I do.

Best wishes and thanks for being here.  🙂

 

~ALEX

There is more than one type of Gold Watch.  The obvious one is the one that you carry around to tell you what time it is. The Gold Watch that we have been carrying around here at Chartfreak is the one where you closely watch Gold and gather clues about its next possible trade / rally.  We were very prepared for what is unfolding currently.  Let me share with you some of the charts I’ve used in the past week to prepare readers in the premium section of my reports this way.

The general markets could be a little “Toppy”, so I pointed this out first.

 

 

Aug 3 I reminded readers that the Semis were sagging

 

Earnings were disappointing.  If the markets drop , maybe the metals would Pop?  I showed charts of DIS, GMCR, TSLA, VIA, etc

AUG 5 –  Many thought that the dollar was strong , ready to break to new highs and run to $1.20.  I said that the dollar appeared to be  weakening internally to me .

 

 AUG 5– I viewed it this way .  If the DOLLAR DROPS,  could Metals POP?  I expected the Dollar to drop.

Back on July 26 –   The C.O.T., $BPGDM, EXTREME NEGATIVE SENTIMENT also pointed to lows in GOLD soon.

Though there is risk in all trading, and anything can happen due to geopolitical changes or circumstances, We were being dealt a favorable hand.  A strong hand in the Precious metals sector was being dealt.

 

To help readers to see this as a possibility….

JULY 29 _ Most still calling for a plunge to $900 Gold ( yes it was possible) ,  but I pointed out that many were saying GDX had a bear flag.  I thought it looked a lot like March lows  AND I saw individual Miners starting to be accumulated.  This added to bullishness.  I used these charts below –

NG– running higher with Gold selling off?  Bullish.

Gold selling off, but SSRI is not even close to the March lows

I’ll admit that I’m not a great E.W. technician, but I did think that these patterns fit well for what I was  “Watching”.

 

FAST FORWARD to this past weekend.  I showed various charts including this one.   HEAVY VOLUME but price couldn’t sell off??  THAT seems like accumulation.  At the very least this is a low risk buy at this trend line, because your stop is close below and the upside could be great.

 

So far Monday and Tuesday have not disappointed, and many Miners are moving higher with good %-Gains .  Have you seen  SA? Up over 70% from its lows.   ( Disclaimer: I didnt grab this one early enough, but there are others set up in similar double bottom fashion).

 

 

I believe that this is not a 1 or 2 day pop, I think we are already seeing small bases and double bottom lows preparing to rally higher. I have been telling my readers that this set up is the type that usually runs for several weeks.  Of course,  they dont usually run straight up,  there can be pullbacks in the  stair step climb higher that offer buying opportunities… It may help if you have a ‘Gold Watch’ on your side.

  Maybe you’ll consider signing up for a month and see if you like what we have to offer here?  Todays report alone will have over 20charts.   We also have a small chat section/ comment section under each premium report where some of our  experienced traders share their ideas or questions too. If you’re not able to sign up at this time, I still want to thank you for reading along here at the free content section of the website.

 

Happy Trading!

~ALEX

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P.S. I have been preparing readers since this spring that a nice summer rally would arrive this summer.  The potential %-Gains could become the best short term trades you make this year.  Best Wishes 🙂

 

BELOW are clips from my premium weekend report

Seems that lately we've been hearing a lot about "Drops" in the markets. Remember when CNBC was reporting that Shanghais drop  may never end until it hits the lows around 2000 again?   "Its collapsing!"  Well, all drops,  no matter how steep, end when selling exhausts.  I posted this support for my readers.  Would it be a trade-able low?-

It did end there, so far.  THAT was a trade-able low

 

GOLD , SILVER, And the MINERS are dropping, but it too will end.  It may become a very profitable trade.  It may be not  THE LOWS of the bear market, but rallies that come out of these exhaustion sell off s can be very profitable . Lets take a look...

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SPX  - In the short term, I see small bearish wedges  that could lead to a pullback or a sideways move in the short term.  If this were to just surge higher and break out to new highs,  that would be bullish.

Interestingly,  The RUT, IWM, and IWC  did break to new highs recently and continued higher.  They might be leading!

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STEEL - Very nice move in steel yesterday.

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