Loading ...Some scribbles for Farmer
Selling in the PM’s today smacks of desperation to me – a la Silver puke earlier this year but much smaller scale. Miners are just tracking the metal, not over selling IMO (good).
The timing as to volume and election uncertainty / certainty (MSM announcement over weekend) of the past few days leads me to guess that weak hands are being flushed out.
If miners were selling off and the metal wasn’t – then I’d be worried but that is not the case.
One day’s action is not enough to establish a trend. The miners could easily (and probably will eventually) catch down to gold before a major bottom.
Chartmaster was expecting weakness into Thanksgiving. That to me seems very realistic at this point. That gives us a few more weeks of downside action potentially, which is plenty of time for the miners to tank further.
And that is not to say we can’t get some counter trend moves/bear flag rallies between now and the ultimate low.
At a minimum we need a swing low before a bottom is in, and there is almost zero chance today’s candle is going to produce a swing low, so ultimately we will be going lower than today, whether that is tomorrow or two weeks from now.
Some thoughts.First, I believe your commentary, XYZ is accurate. I like the strength many miners are showing in particular the rocks. Second, Nautilus, I have said that the next major leg higher wasn’t going to happen before Thanksgiving. In recent posts I was looking for a bottom to be made and after a bounce a pullback before the new major upleg begins. My more recent posts and comments within others posts suggested the bottom was likely in, last weeks move was the bounce and we are almost at the buy point.
“One day’s action is not enough to establish a trend.”
Correct. But this is a continuation of the downtrend since August/Sept highs.
Still looking for the 200 dma’s for GDX. Likely pin it.
Gold to SPX also still in downtrend, but I now have VLT bottom alerts.
First since late summer 2018. Nothing says the end is imminent though.
Far from it. Late Dec is a possibility, as always.