Goldtent TA Paradise

GDX 60 Update…

1. pedro_deleon says:

   October 26, 2017 - 7:38 pm at 7:38 pm

   In my last major commentary on GDX, supplied a month or so ago along with Sam’s revised count (wherein he reversed his bullish EW outlook towards one in rough accordance with my bearish non EW take) I presented my view that HUI/GDX etc would be dropping at least into late December, and possibly into spring.

   Given the pace at which this decline is moving — drip drip drip — I believe the odds are shifting towards a more extended decline, time wise. Which shouldn’t be a big surprise as the odds (as I see them off my LT studies) also favor SPX riding higher well into 2018. Ranchida sees an April/May general market top, and that looks quite viable. Basically, we likely need an advance decline divergence that comes from a meaningful market selloff leading into one last BTFD ascent to final highs.

   Returning to the GDX itself, I will be assuming that no final bottom will form until certain LT indicators I use hit their typical LT cycle lows. And in too many instances (reviewing miner by miner) they are still coming off TOPPING formations that developed in these indicator sets back in August/September as the oversold conditions from Dec 16 were worked off. With largely sideways price movement, that I see as particularly bearish.

   If you can pick the odd lot winners, more power to you. I can’t. I prefer identifying the direction of the main channel current, and playing in the ETF pool with leverage. To those offended by this strategy .. to each his own.

2. red label says:

   October 26, 2017 - 8:34 pm at 8:34 pm

   Thanks ES.

   RSI below 30 well it’s a start.