Loading ...Monday’s Gold Action?
So like I’ve been saying, I expect the consolidation we’ve been experiencing for weeks to resolve strongly to the downside. That will make losers and sellers of the most people possible during the multi-week churn. Similar to early Oct 2014 I think that strong downward push will tee up the corrective move many have been waiting for (and incorrectly positioning themselves for). If we get the flush on Monday like I suspect, I will have a huge gain that I will cash out and start looking for the corrective bounce. The chart below shows the fractal I’m eyeing and some fib-based bounce targets that could come into play during the 2-3 week correction (I’m guessing on timeframe).
So it looks like the last push down is 40.00 from the 1099 high, then 1060 to 1120 rally, followed by final plunge to sub 1000
Mark, this looks interesting…am long for moment and hoping the bounce is on…but got to say looks compelling and you have a habit of being right!!
Have you and Plunger been talking?
Mark: The JDST cup handle target would probably be $29 and you were targeting $24 — do you now think that will be truncated and we are now just going to have one-day dive in gold/gdx/gdxj and then a 2-3 week advance? It will be interesting to see how it goes on Monday. I’ll be traveling that day — I hope I can stay nimble (ok, get nimble, I never get in and out cleanly!).
James – yes, that’s the basic scenario I’m looking at.
Eagle – nope, haven’t been talking to plunger but great minds think alike? 😉
Kemmrich – yes, I do see JDST going to $24-$29 (and eventually higher) but there will likely be a correction in between. I suspect we breakout of the cup & handle early next week (I think Monday) and then we have a correction which may be pretty subdued with the miners like it was in Oct 2014 (gold bounced way more than miners did)….this will probably just backtest the C&H breakout. Then the bottom falls out and JDST rockets upwards.
Anyway, that’s my working theory….we all are just making educated guesses.
Note the strong bounce in gold last Oct with a similar chart setup resulted in a very muted bounce for the GDX. I’m expecting same here. Perhaps this coincides with a strong move down by the S&P creating massive headwinds.
http://schrts.co/tscazL