OCT 23, 2014 As I begin writing GOLD/MINERS are at lows of the day. Miners are breaking to new lows, a break down? It looks like it on the surface.
Here is what I am seeing ( but you may not want to touch this yet). I know this sounds C-R-A-Z-Y , but I am seeing something odd with the GOLD RUN UP & MINERS SELL OFF. Does THAT correlation usually last? No. As I have mentioned – $GOLD looks to have made a real ICL, meaningful low, just like last May. GDX is testing High Volume FED MINUTE lows. I would watch for a “POSSIBLE” reversal today, thinking the MINERS are making a 5th wave down, POSSIBLE false break down. We are actually testing a HUGE candle on 1/3 rd the volume. Those “Light Volume Tests” reverse FAR MORE OFTEN than not. I expect a reversal or bounce if volume remains this light, but its RISKY. You may just want to LOOK , DONT TOUCH.
I also want to zoom in and show you a 5 day 5 minute chart …
GDX 5 day / 5 Minute
A wedge is forming at todays lows, they can exhaust and break upward. (Click to enlarge), But we still remain in a down channel
I have repeatedly said that GOLD looks like The MAY LOWS run up, Due for a small dip to the 20sma. We are there…
I wonder, will GOLD catch up to Miners on the downside? Or might MINERS catch up to GOLD??Again, this correlation “GOLD VERY STRONG, MINERS QUITE WEAK “shouldnt last in my opinion.
and GDX looks like DEC lows run up (Which meandered at lows and shook out everyone – ( EVEN MADE NEW LOWS, JUST BEYOND THE BLUE ARROWS- LIKE GDX TODAY).
Yes, I tend to analyze things and look at things a little differently that others. I see things differently, but I am still trying to remain UN BIASED. GOLD STRONG/ MINERS BREAKING DOWN? That needs to resolve soon, but which way is more likely? Am I saying BUY RIGHT HERE? NO!! (Although it is a low risk area with a TIGHT STOP under the wedge : ) I am asking you to just imagine that the unthinkable could happen, Miners could actually catch a bid here as it looks like a break down to new lows, and become as strong as the Metal that they represent.
Are you out? I think just about everyone is OUT or SHORT Miners. I wonder, Is everyone in JDST and DUST? Lets just watch how this may play out….
and you may want to “LOOK, DONT TOUCH!”
This update is just here to keep you Frosty & Alert to a strange market and odd “Possibilities” . If we get a reversal, as impossible as that seems here, I will likely do a full update tomorrow morning. Right now I just noticed that NG, RIC, GORO, ASM, TRQ, PAAS, SLV, and more actually turned GREEN! Its getting weirder by the moment
STAY FROSTY MY FRIENDS!
P.S, Sudden Sweet reversal right now in HL, and you’ve got to love RIC