An interesting situation which, if not yet positioned or only lightly positioned, may manifest in a solid buying opportunity. There are a couple points on the chart we’ve been aware of the whole while, and today’s little bear flag breakdown targets one or more of those. The sector is despised and yet there may be rationale in play to the contrary. Signed, he of the rose colored glasses (and cash) seeking opportunity.
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Thanks, Gary. Question to the chart guy: Is it possible to distinguish between double bottom and bear flag breakdown, without benefit of hindsight? I’m looking at March lows.
Not sure I fully understand your question. But one thing to consider is that on a daily chart a bear flag breakdown like the one on GDX need not be and probably isn’t a major event. Its implication is to tick a very S/T lower low, which it did on Monday. Beyond that, it could be the start of something worse but does not need to be.