Its Scary – Yet Its Beautiful
Nov 7, 2014 7 A.M. The clouds that you see in the above Pictures are real. If you were standing there watching them drop down, it could be very eerie, scary , and yet at the same time….Beautiful! The Mammatus clouds are very rare, and that’s why when you see one dropping down before your eyes in a way that is not normal…it is mesmerizing . It can freeze you in your tracks.
What does that have to do with GOLD?….
Lately, every 6 months (Give or take ) we witness something in Gold that can be a little SCARY. The type of drop down in Gold that I am talking about is Rare too, so when it happens, it stops people in their tracks. People stare in awe at the depths of the correction and it too can be quite Mesmerizing. You may recall June 2013, Dec 2013, May 2014 Lows and recently I thought Oct 6 was going to qualify as “THAT” type of sell off lows in Gold, however when Miners didnt bottom – GOLD too failed . In fact, GDX/GDXJ/HUI/XAU /SIL etc floundered around and collapsed further- dragging Gold & Silver dropping down too..
Well recently, and especially Last Night I saw what looks mesmerizing to me. It was scary-yet beautiful (And it may prove to be meaningful, so I wanted to share).
If you woke up to see this this morning…you missed it
Last night a MAMMATUS CLOUD formed in Gold and it got slammed down about $10 – it looked ominous as it broke to new lows (Click to enlarge)
HOWEVER—That slam down recovered rather quickly, like a classic “Stop Run”. So what? We havent seen that since those OCT 6 lows, which did turn into a deep Daily Cycle in Gold (just not the ICL) . Notice that each time the “Stops” were broken on the way down , there was no recovery...just the abyss like feeling when the Mammatus Gold Cloud rolls in and we stand in Awe at how deep it can roll over.
Last nights stop run recovered. THAT is something that I take note of.
ALSO…The last time we had a stop run and reversal (Oct 6) – Miners didnt lead and Miners didnt follow, remember? THAT should have alerted me, but I figured they would just POP higher and surpass GOLD , since Gold was acting correctly.
I showed a few “SIGNS OF LIFE” in a recent report, and those Miners and a few more are still exhibiting signs of life. Look at RGLD here-The way I use Tech Analysis…recovering OCT 6 lows is Bullish. A buy and stop can be set I.M.O. The conditions of the OCT 6 sell off (in certain indicators that I Use) were extreme and qualify as “Different” . The added daily cycle of 1 month (Nov 7 today) may , in hindsight, be a shake out on weekly charts. We wont know for a few weeks.
Is a GOLD sell off into those “Meaningful Lows” , an ICL, awe inspiring & scary or beautiful? Maybe both
This report is just to tell you that what I saw last night is what I am watching for. I am NOT telling you to buy, though I have in the pre-mkts. I think the low was NOV 7 just after Midnight in a stop run, slam down reversal/recovery. PLEASE DO NOT FOLLOW ME based on my thinking– I am in front of my computer all day if I wish. You can just watch and see if I get stopped out – or –see if what I am seeing is a low risk entry. There will be PLENTY of time to get in as this unfolds. This sell off was steep and the snap back will be beautiful too!
Look at NATGAS , look at UNG and UGAZ. The recovery in Miners may mimic it. If lows are in , you will likely have confirmation & know it next week.
Also Remember I posted this WEEKLY CHART -last night was a run below and recover. On a wkly- it is correct.
I will be busy today, we have JOBS REPORT at 8:30 and the day could be exciting, so if you email or comment on the site, likely my eyes will be elsewhere , I will respond later. Thanks for checking in-
Are we there yet? I have started buying, many Miners look great so on your mark, (maybe for some, continue to be patient) and then get set ……….
Next week you’ll know! 
I still get emails saying that they are getting a message saying ‘unable to embed this recording’ . Click Download here as shown
– It’ll ask you if you want to save to your computer or open? OPEN it just plays it for you.
Beautiful
Bob! Great to see you- I still fondly remember the morning chats and laughs we used to have : )
Hope all is well & thanks for stopping by!
Beautiful
Bob! Great to see you- I still fondly remember the morning chats and laughs we used to have : )
Hope all is well & thanks for stopping by!
Your charts are shouting compelling 1136. They ran down he shorts. Great charts Alex, as always yours is my home page.
Thanks Matthew – Its a great move up off of the bottom now , hoping we get the follow thru next week . Uraniums, Natgas, Coal etc all seem to be lifting up nicely. I like to see that & think that Metals can play some catch up now 🙂
Thanks for the kind words.
p.s. That $1130’s area can be lows for a couple of weeks, and then we may end up with another sell off…so we’ll just try to stay alert. For now, I expect a couple of weeks of rally is we get back above the 10 & 20 sma.
Your charts are shouting compelling 1136. They ran down he shorts. Great charts Alex, as always yours is my home page.
Thanks Matthew – Its a great move up off of the bottom now , hoping we get the follow thru next week . Uraniums, Natgas, Coal etc all seem to be lifting up nicely. I like to see that & think that Metals can play some catch up now 🙂
Thanks for the kind words.
p.s. That $1130’s area can be lows for a couple of weeks, and then we may end up with another sell off…so we’ll just try to stay alert. For now, I expect a couple of weeks of rally is we get back above the 10 & 20 sma.
Alex, for some reason I cannot download your audio report using Google Chrome (or at least i dont see buttons to do so), but I can easily DL using Mozilla Firefox. Just my two cents.
Thanks Rob- Someone else told me that they have trouble with Apple products, because it says it cant imbed this content. Thats why I added the last picture…I thought some just missed that “Download” spot.
Good to know.
Alex, for some reason I cannot download your audio report using Google Chrome (or at least i dont see buttons to do so), but I can easily DL using Mozilla Firefox. Just my two cents.
Thanks Rob- Someone else told me that they have trouble with Apple products, because it says it cant imbed this content. Thats why I added the last picture…I thought some just missed that “Download” spot.
Good to know.
Wow! GDP seems to be moving…missed the take off though :-(. Nice call Alex! Where do you see the next low risk entry assuming it closes well above the 10MA (I’m looking at just above the 20MA)?
Yes DESHY – some of those Energy picks were laggers making up for it now. GDP, EXXI , and the uraniums I mentioned yesterday? DNN URRE URZ etc – crazy!
GDP is a good low risk set up anyways, it was a successful double bottom. Just above the 20 is a good buy because it hasnt closed there since this summer (you may get that today). I like the set up near these lows . Best wishes!
DESHY…I was looking at HERO – similar set up to GDP. It tagged the 20sma a couple of times and THEN broke higher. You could use that bottoming process as an example, but I tend to think these are all ready to go now.
Thanks. Dipped toe in GDP…probably a bit early. Fingers crossed close is above 20 so I’ll be able to set a close stop.
I dont think you’re early…your timing may be perfect : ) the energy sector looks really lined up for a nice run I.M.O. (trying to cover it in the wkend report a bit).
Wow! GDP seems to be moving…missed the take off though :-(. Nice call Alex! Where do you see the next low risk entry assuming it closes well above the 10MA (I’m looking at just above the 20MA)?
Yes DESHY – some of those Energy picks were laggers making up for it now. GDP, EXXI , and the uraniums I mentioned yesterday? DNN URRE URZ etc – crazy!
GDP is a good low risk set up anyways, it was a successful double bottom. Just above the 20 is a good buy because it hasnt closed there since this summer (you may get that today). I like the set up near these lows . Best wishes!
DESHY…I was looking at HERO – similar set up to GDP. It tagged the 20sma a couple of times and THEN broke higher. You could use that bottoming process as an example, but I tend to think these are all ready to go now.
Thanks. Dipped toe in GDP…probably a bit early. Fingers crossed close is above 20 so I’ll be able to set a close stop.
I dont think you’re early…your timing may be perfect : ) the energy sector looks really lined up for a nice run I.M.O. (trying to cover it in the wkend report a bit).
Alex cannot load on iPad your audio. When “download this media” is pushed, Safari cannot load comes up. Very frustrating.
Ken, Thanks, I’m glad that you wrote that. I need to fix that, but in this mornings report, I felt that it was important enough (Since I was moved to buy in Pre-Mkt) to try to write everything I was going to say too. Not leaving any details out. Today…the writing is more focused than the audio so you’re not missing out on any details. It is a problem that I need to address though, and I’m glad that you mentioned it. Thanks for being here.
Alex cannot load on iPad your audio. When “download this media” is pushed, Safari cannot load comes up. Very frustrating.
Ken, Thanks, I’m glad that you wrote that. I need to fix that, but in this mornings report, I felt that it was important enough (Since I was moved to buy in Pre-Mkt) to try to write everything I was going to say too. Not leaving any details out. Today…the writing is more focused than the audio so you’re not missing out on any details. It is a problem that I need to address though, and I’m glad that you mentioned it. Thanks for being here.
Alex, you have been right on lately. The uranium stocks are ripping Today as you estimated URA. The energy stocks you mentioned are also ripping BTU, WTI. The miners as you suggested are also ripping NUGT! Great calls. Right after the elections as suspected. My question now is you said these were all setting up for a buy, how do you determine an end target? Where do you suspect they end up? Hate to chase but its just starting. Expecting a pullback on Monday?
Personally, I am thinking we saw an ICL in Gold/Miners …COAL & URANIUM and many ENERGY are acting correctly (Higher lows IF they pullback. Some double bottoms) basically exactly as I had pictured it
IF I didnt have a position , I would find places to enter with a starter position – if it then drops, BUY the pullbacks . I actually think Monday will be a day of follow thru…but who knows for sure. We ended the day at highs = bullish. SHorts are covering and take a look at UGAZ and UNG…that could happen here too. NATGAS was getting driven down daily & shorts were in…then the flip.
Even look at WLT – the MOST HATED stock in Aug & Sept, bottomed and has now gone up 100% off the lows with hardly any down days.
I will cover more in my weekend report.
Alex, you have been right on lately. The uranium stocks are ripping Today as you estimated URA. The energy stocks you mentioned are also ripping BTU, WTI. The miners as you suggested are also ripping NUGT! Great calls. Right after the elections as suspected. My question now is you said these were all setting up for a buy, how do you determine an end target? Where do you suspect they end up? Hate to chase but its just starting. Expecting a pullback on Monday?
Personally, I am thinking we saw an ICL in Gold/Miners …COAL & URANIUM and many ENERGY are acting correctly (Higher lows IF they pullback. Some double bottoms) basically exactly as I had pictured it
IF I didnt have a position , I would find places to enter with a starter position – if it then drops, BUY the pullbacks . I actually think Monday will be a day of follow thru…but who knows for sure. We ended the day at highs = bullish. SHorts are covering and take a look at UGAZ and UNG…that could happen here too. NATGAS was getting driven down daily & shorts were in…then the flip.
Even look at WLT – the MOST HATED stock in Aug & Sept, bottomed and has now gone up 100% off the lows with hardly any down days.
I will cover more in my weekend report.
Great call today!! Thanks
Thanks DUY24 – I am seeing some really nice set ups, and I hope to be able to help others take advantage of them too.
Great call today!! Thanks
Thanks DUY24 – I am seeing some really nice set ups, and I hope to be able to help others take advantage of them too.
Nice call on the 1136. I thought the bull/bear miner tug of war this week was clearly indicative of a low nearby. BUT I was convinced NFP would continue to come in high and we’d get a $10-15 lower final shakeout. Loaded short and got whacked. Looks like at least 2 weeks higher while dollar takes a rest. Appreciate the notes this week keeping me straight. Do you have an upward target? Will 1180 turn into resistance or can gold power to 1200. Think this isn’t the final low but quite a power move today.
Hey Cason , This will be a lot more powerful than 1180 , I think you’ll be surprised. I will cover it in the weekend report.
And I dont know if your interested but SO MANY set ups elsewhere too…MANY energy stocks look great. Thx for writing
Nice call on the 1136. I thought the bull/bear miner tug of war this week was clearly indicative of a low nearby. BUT I was convinced NFP would continue to come in high and we’d get a $10-15 lower final shakeout. Loaded short and got whacked. Looks like at least 2 weeks higher while dollar takes a rest. Appreciate the notes this week keeping me straight. Do you have an upward target? Will 1180 turn into resistance or can gold power to 1200. Think this isn’t the final low but quite a power move today.
Hey Cason , This will be a lot more powerful than 1180 , I think you’ll be surprised. I will cover it in the weekend report.
And I dont know if your interested but SO MANY set ups elsewhere too…MANY energy stocks look great. Thx for writing