The $XAU, gold and silver sector has taken a beating like I haven't seen. This selloff is brutal, straight down from 210 to 110, in a matter of 8 weeks. The head and shoulders top formation that I mentioned a few months back is nearly complete. The technical damage is actually alarming but, as Tim Ord mentioned today, gold stocks are near the cheapest levels that they have ever been in relation to the physical metal itself. If we are going to bottom, it will be right here. There is huge support here in the form of the Head and Shoulders target, the lower boundary of the previous 2 year range in the XAU, and also from the 2004 highs. Sentiment is as bearish as it gets and this is bullish. If this market fails here, it could be ready to make a move back to the 90 level but we will take it one step at a time. I may start nibbling at the GDX here; however, I am not looking to initiate any long positions until a sharp move down comes in the broad markets. I believe a sharp move down in the broad markets will take everything with it.
I dont follow this one but it looks good. I love the morning star setup that occur right at support. The action on Friday was very bullish and I, too, expect the market to run higher. The precious metals will most likely scream higher here. Good trade!
Have you noticed the beautiful morning star formation on the DGP? I entered the market yesterday at 14.13 looking for a nice swing or day trade on a hopeful dead cat bounce.. I was up significantly ftd but before I sold I noticed the formation and decided to hold onto this position over the weekend.. I usually never do that and especially during these times.. but! however I feel confident I can gain another 9% or so on this trade.
admin
DGP looking higher
I dont follow this one but it looks good. I love the morning star setup that occur right at support. The action on Friday was very bullish and I, too, expect the market to run higher. The precious metals will most likely scream higher here. Good trade!
anonymous (not verified)
Morning star formation
Have you noticed the beautiful morning star formation on the DGP? I entered the market yesterday at 14.13 looking for a nice swing or day trade on a hopeful dead cat bounce.. I was up significantly ftd but before I sold I noticed the formation and decided to hold onto this position over the weekend.. I usually never do that and especially during these times.. but! however I feel confident I can gain another 9% or so on this trade.