Back on October 2nd we took a look at an ugly Head & Shoulders pattern and a pretty one. The ugly one was the one on gold miner bear fund DUST. It took a while but today it confirmed its bearish pattern, big time. Couldn’t happen to a nicer bunch of Men Who Stare at Charts; the precious metals bears, a couple of whom I witnessed staring at things like a bullish USD and miner breakdowns and advising their herds bearishly, with a certain confidence that I find detestable (dude, you stare at charts and make your findings sound important; it’s not like you are doing a real job, like market analysis).
Today DUST took out its SMA 50 and absolutely harpooned the neckline. Gold bears that did not book their losses have got to be soiling themselves now.
And in that 10/2 post we also noted a pretty, although not yet activated, Inverted H&S. In a public post yesterday we showed the parameters that we had used in an NFTRH update back on October 8th in order not to get shaken out of positions (I in fact added to existing positions). It’s why we have parameters. When the going gets tough, the tough get… guidelines with which to work rationally instead of emotionally.
How many bounce players and/or bulls did the gold stocks shake out on the recent tests of the shoulders’ symmetry support? How many bears got sucked in to this slaughter?
Now best of all, we have an opportunity to turn the macro. We also have plenty of sector and macro fundamental charts to review this weekend, one of which I cannot get out of my head it is so profoundly meaningful if the macro pivots a certain way. It is a combo funda and technical picture of why the miners are potentially a ridiculous value at this time. Now we’ll do the work of gauging whether the macro will play ball. So far, so good.
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