Turning Factors Forward
Up to now, this week has been calm. Nonetheless, as you learn in my earlier evaluation, the turning factors are close to and we nonetheless have 4 extra periods earlier than the tip of the yr.
simply failed to maneuver above $100k once more, and it’s declining within the pre-market buying and selling, and is down as nicely. Time will inform if that was the start of a much bigger downturn, or will we nonetheless have to attend for it to begin.
The calmness of the week signifies that I’ve nothing new to report in case of the outlook for , and Freeport-McMoran Copper & Gold (NYSE:). And the identical goes for , , and the .
All three of the belongings the place now we have brief positions have paused not too long ago, and because it occurred after a large transfer decrease, it’s a very pure phenomenon.
Within the case of the FCX, it’s after a breakdown beneath the top and shoulders sample, which signifies that the present tiny transfer is completely in tune with the probably post-H&S sample motion, and it solely confirms the very bearish outlook.
Within the case of the GDXJ (and ), we see the back-forth motion is going down beneath their November lows, which signifies that the breakdown beneath them was simply verified.
Within the case of the [new asset where we have a profitable short position], now we have the identical factor, with the extra be aware that it’s a lot weaker because it fell nicely beneath its November lows and presently didn’t handle to maneuver nearer to them.
Additionally, please be aware that each one the above is going on (or really, not taking place), whereas the overall inventory market moved greater not too long ago.
Which means all of the above-mentioned shares are NOT following shares greater proper after they DID observe them decrease, magnifying their declines. It is a affirmation that we accurately selected the proxies to revenue from the declines in in shares and within the treasured metals sector.
Having stated that, I believe it could be time to revisit the weekly chart (based mostly on weekly candlesticks) that includes gold and GDXJ to place issues into perspective. It’s only one chart, nevertheless it’s very wealthy in indicators and clues.
Impending Transfer Decrease
All proper, the place will we…
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