Just a quick follow up to this morning’s video update. First and most importantly, I’ve changed the chart’s color scheme from that tiresome yellow to something easier on the eyes. :-)
Secondly, GDX closed the day as speculated might be the case, holding by the slightest hair the 26.59 March low, as it ticked 26.62 today. I’ll continue to lean toward a bounce upcoming if for no other reason than the impulsive post-FOMC drop was something that everyone saw and many reacted to. Hence, I covered my short at least. With respect to the entirety of the correction, risk/reward is firmly on the bullish side from sentiment and technical perspectives. Fundamentals are another matter.
If I add any gold stocks (along with dropping the hedge, I subtracted two and increased one today) it will be as part of an overall play on a market bounce or resumed rally, likely with an anti-USD flavor if/when the overbought buck takes a pullback. That is assuming the fundamentals remain compromised. To remind you, I tune out most of the fundamentals presented by the gold community (geopolitics, cyclical inflation, crude oil rising, ha ha ha, and anything else that does not see gold rising vs. cyclical markets and assets). It’s anti-USD at this time.
Bottom line here is that the March low holds by a paper thin margin and a bounce is very possible, if not likely. Otherwise, there is no calling an end to the correction or even thinking about it until either a complete crash and washout comes about – the kind of tank job that you (assuming you have interest in gold stocks) just have to buy with the fundamentals launching higher – or the SMA 50 and wedge top are taken out. Ultimately, the 200 day moving average would also need to be taken out to really clear the track.
Gary, can you please have a look at DJUSPM (senior miners) chart. Because if mids/juniors follow (and overshoot as often happens) the majors situation may become very interesting.
Something wrong here Gary, why did I become anonymous (Armen). If I’m not logged in, how can I read protected post?
I had a similar issue, Armen. WordPress has updated/changed something with the Comments function. Being logged in to this post (and the rest of the site’s protected content) is different from being logged in to the comment system. In my case, I selected the WordPress option to log in. But I see there is also FB and email for logging in. Other than that I have not looked too closely into the issue yet. I’ll get back to you on the DJUSPM request.