So this move out of a W bottom has been exactly what I was looking for at the end of September. What has caught me offguard has been the complete lack of pullbacks or flag building along the way. My intention since the breakout on Oct 2 and profit taking the next week has been to buy back in on a supportive bounce of the 13EMA. Well we haven’t come close at all. In fact, we have never pulled back more than to the 5EMA during this entire upmove. It got me thinking tonight about looking left a couple of years to see how similar moves have fared. I cant find any that were sustainable that didn’t pullback to at least the 13EMA for support and flag building before building cause to chug higher. The ones configured like the current move have all crashed and burned unless they dipped to the 13EMA and found support first. I will cover shorts and be a buyer on a “supportive touch” to the 13EMA. Otherwise, this move may be just a flash in the pan.

GDX