Loading ...Crushing
No one has said it yet but today’s action is crushing for Goldophiles .
If you are new at this game …beware this is quite common .
PMs can tank hard right out of the blue…with little ‘warning”
The charts were showing weakness for a while but with the potential of a blast off up due to the present day environment
and the incessant permabulls shouting all day…
Most PM Lovers just hold on.
Fir what it’s worth I don’t think the PM Bull is over by a long shot…BUT this move could continue untill all hope seems lost.
FWIW..
Welcome to the Gold Market
We almost always see Capitulation selling at Gold ICL and that has not happend yet. I am still expecting the next ICL to form sometime after the US Election.
Gold was chopping in a Bear Flag and was rejected at the 50ma early (on D.12) and was struggling to hold the 10ma late in its short-term Daily or Trading Cycle. Sure loooked like a Cycle recipe for a move lower into its next ICL.
Gold has held up just fine. It’s the mining stocks that have been the bane of speculators. GDX:GLD still well below the 2016 peak. It really does beg the question why anyone bothers with mining stocks as long term holds. Return free risk.
I used to think that during this part of the gold bull the mining stocks would crush gold, but it’s looking less and less likely as time goes on–more like the opposite is happening. The old refrain from mining shareholders is “Just wait until gold breaks above [insert pie in the sky number here], then you will see the miners outperform.” It’s getting old.
I got a “LT” sell on GDX in early August. Soon after I elaborated that these signals take months not days or a few weeks to play out. I’m pretty sure I shared that view here.
I still have the 200dma as the likely bottom zone for GDX, and timing is in line with Surf’s — after the election perhaps by a week or two. I’ll hop on NUGT and JNUG for that next ride. I know I can’t pick ’em. Timing is more my stock in trade. Know your strengths and weaknesses and don’t marry them. (Just the bullion at VLT bottoms)
EW has this as a 4th wave. 5s can be EDs so be careful after 1ED of 5, as 2EDs retrace DEEP. EDs are common in the FINAL UPLEG of a long pattern. As this would be from 2015 if my view is correct.