Gold Giddiness – Predictions the Bottom is In – But then….the DUST chart
Yes, by mid-Sept I admittedly was in the camp that a significant bottom could have been carved in. I positioned myself for the pop and we certainly got it. But the panic buying, gappy nature of the move is concerning…right up into major league resistance on the weekly and monthly charts. Now we see paid service folks making bold calls for the bottom being in. Now we have theories on QE4??? This is how tops get made in the SM and PM space. What’s most compelling to me however are the charts like this one from DUST. This doesn’t look at all like a bottom for the miners and in fact looks like a setup for a lower low now. We have to be nimble here and continue to position ourselves for the best odds and that means straying from the highly emotional masses. Ive built a tidy DUST/JDST position over the past 2 days and I continue to feel that’s the best risk/reward play right now.
FOMC day it will be violent day!!!
Where are stops???
“This doesn’t look at all like a bottom for the miners and in fact looks like a setup for a lower low now.”
Agreed but for the “now” part. I’m not quite there yet.
I’m watching for MY setups on DUST etc, and they are likely coming within the next week or two.
So I’m not ready to start building those positions just yet.
But I also tend not to attempt to front run but rather wait for my cues.
Dust is getting creamed and miners reversed all losses and are making new highs….
you mean “gold is getting creamed and the market skillfully sucked in more GDX and gold longs right at what could be a major market inflection point as we witness a classic intraday reversal”? 😉
http://charts.dacharts.net/2015-10-08/d1173.png
http://charts.dacharts.net/2015-10-08/d1174.png
dust needs to break back into the horizontal resistance area to help confirm the reversal…
Agree!!!!
It is what it is — don’t fight the tape. There could be another reversal today, but hoping is not a good strategy for the markets. In fact, it looks like a potential reversal is back underway!
a reversal of a reversal of a reversal…lmao
The XAU is up five straight days in a row. Six up days in a row for the XAU tends to be the historical max, without some kind of pullback. So this move is pushing it in the short-term. The action in the next few days should tell the tale.
I agree with Mark on the next 2-3 days, a pullback is coming into next week for Gold and GDX along with a surge up in the USD to resistance – let’s see what happens 🙂
Well that was a dramatic close to the day. Shooting star candles in all the mining indexes. That is a potential warning the uptrend is done for now.
Mark, good commentary. Yes those running gaps are really telling.