Loading ...ALERT: CRASH incoming
WARNING FOR IMMEDIATE CRASH UNFOLDING NEXT FEW TRADING DAYS.
Below the INDU chart where price BO-DOWN its Black Dashed HOR.Support and BO-DOWN the assumed triangle earlier than thought.
INDU can DROP to the lower (middle) line of the FORK by 8%. I expect within few (trading) days; read Next week. Note: VIX rose 18% yesterday.
The telling was already in the INDU line chart with GDX-overlay as presented last Friday that GDX could have been forming a (Right) shoulder of its ‘H&S..
While DUST has been banging and testing its’ CUP last three days and actually already BO (though little) yesterday.
Followers know that I mentioned in last DUST-post that it could go FAST as for SYMMETRY; see little RED/BLUE ARROW (on the DUST chart). DUST could reach its’ PO (of 27) within few trading days. Therefore DUST makes a probable chance to rise 64% total in next few days. This in itself makes GDX drop by approx 30% as DUST is inverse GDX 2x velocity but as DUST is compounding … lets say GDX DROPS by 22-25%.
All proabable reasoning as GDX goes as equal as INDU goes … sometime GDX goes ahead of INDU while in extremes GDX is acting exaggerated compared to INDU. This may inform us that GDX (-22%) will DROP MORE then INDU (-8%).
IMO.DYODD.
For me I am not shorting the gold stocks just watching to buy them at lower levels. I have been short a handful of select stocks (PRU was one) and the DOW & SPY.
I would say this is the first time since October that a crash is actually a possibility. Until now the market has simply been too bearish. But the 5 month BMR finally chase the bears out of the market. Once that is done Mr. Bear needs to get his work done in a hurry before they come back. He likes to work alone. Last weeks melt up was simply one last campaign to squeeze out the last bears.
Agree on the Gold-stocks strategy although I will wait for next 18 months before buying into any PM-stocks … as I see it.
I expect total annihilation of Gold stocks into the abyss.
JMHO, I think they have been annihilated enough. They may not bottom until this summer. (bottom in here with a bounce then a final low) but I think the capitulation came last September/October. It’s time for teh cycle to now turn and the bull market to resume in the golds…. finally
Understandable. And indeed next Sept/Oct will form an intermediate low (just like next May cycle-low) based on my cycle work and will bounce BUT My cycle work predicts a final low not earlier then in 18-22 months. Some PM-stocks goes little earlier, some little later as each stock has it own cycle as well. GL.
Certainly could happen and would be total death to the sector. One element to the bear market certainly has already been fully completed is the capitulation in the junior miners. Although conditions may not improve there, I don’t think the psychology is likely to get that bad again as last fall.
I can’t say with any certainty when a bottom will finally come, however the conditions of monetary turbulence and lowering input costs are the breading ground for a bull market in gold stocks. Just a question of when it takes hold. But keep in mind that stocks are a discounting mechanism.
Sir Plunger. The thing that most (if not all traders/investors) discount is the possibility of complete confiscation of bank accounts AND Trading accounts by GOV for any imaginable reason/LABEL. Therefore best investment and/or trade (in the real world) is any goods, material, equipments that are needed, LT food (best being self.suff.), (productive) land (RE) and ofcourse PHYS and some cash (USD, CHF); anything tangible If have serious amount of $$ then go overseas and store in private high secured fault.
I hope I am wrong but I dare to bet you a bottle of RUM at Fully’s Bar called ‘Bottoms inn’ 😉
Wish all of us the best!
There is no bet there b/c I agree with you. Physical EVERYTHING is the best investment. But once secured then what? A general confiscation is simply a doomsday action. That leads to total chaos and breakdown.
‘But once secured then what?’…
Share with others, give away to true friends and people in need.
The past few weeks a few well heeled friends have mentioned that their financial advisors are sector rotating from the general mkt into precious metals and cash. Not large positions but a definite change of direction from the past year.
Many of them did very well in the PM rise into 2011. Hmmmm….
These guys don’t know each other or don’t discuss the subject. The wealthy do not dirty their hands with these matters.