18 thoughts on “CHART OF THE DAY

      1. Bob UK

        Thanks Jay – I am out and about and only saw a glance of the chart on a TV in a shop when passing. The journos were reporting it as having broken through 15 bucks.

        1. Jay

          I was looking at silver futures. Looks like spot did briefly get above $15 and rapidly pulled back again.


    This may be UP wave 4 which will top probably today. This will allow some bulls to be drawed in. The 4 wave will be weak. Then like Gary said maybe an attempt to drive it lower on Sunday or sometime during next week. If they succeed that will mark final wave 5 of the correction. 5 wave should be half a size of wave 3 so it will be significant but not too big. GDX between 13.40 to 11.00. Good luck everyone.

  2. JoshuaF

    How about buying GDX $13 Puts Aug 21st as insurance if already long with paper profits? Good for the emotions!

    1. Jay

      All-time lowest weekly close in GDX. 7 consecutive down weeks….shall we try for 8…9…10…and so on?

      1. JoshuaF

        If you know Gann, 7 is the number of Death. That means no continuation! Thanks for that. Another reason that this market is about to turn! There are so many reasons it is unreal. Lets hope the “big boy” who threw 12000 contracts 3 minutes before the report got released screwed himself. My puts are showing a 28% profit on outlay right now. Will see what happens on Monday.

  3. Jonathan

    FWIW, for the first time since the 2009 bottom, we will have a double-digit negative EPS growth quarter (Q2) for the S&P500.

      1. Jonathan

        Go to the S&P site for index earnings, and compare to Q2 2014. So far -10% and has been sliding, will be finalized around 8/20.

  4. Jonathan

    Interestingly, after broke out in April, the 10-yr yield dropped below the breakout level. The market probably slaps the Fed’s face, which is determined to hike no matter what. I still think it should not hike for now, but nothing in the world can stop the Fed.
    I think the Fed cares too much about the market reaction, this is why we are having zero (!) volatility which is killing hedge funds. I think the right way is to loose not tighten until we see inflation, then tighten, thus restoring the normal volatility and the normal market. But hey, just my opinion, won’t matter.

  5. zkotpen

    Interesting comments on the pre-market hit on gold. I also had a 1099 upward price target — “capped at 1100” — in mind.

    Thinking it thru, I’m beginning to think Friday’s hit was actually a success — push price down to the lower trendline to draw in the longs on a dramatic reversal spike, before initiating the real move down – perhaps Sunday night. Gold spiked ~1% from 9:22 to 9:35 a.m. Friday morning. On Thursday, somebody bought 10,000 GDX 13.50 calls near the morning lows. Two more blocks of 5000 calls were also added at subsequent dips. I estimate an average price of about 12 cents, for 20,000 calls ~$240k. Those calls were then sold at the first GDX spike Friday morning, ~25 cents, for ~$500k. I also noted similar activity for 20,000 GDX 13.50 calls expiring next week: Bought Thursday, sold Friday morning.

    Here’s an interesting article about gaming the markets:


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