42 thoughts on “ANOTHER CHART

  1. Gary Post author

    This would be the perfect spot for the daily cycle low to resume in stocks and erase yesterdays PPT rescue.

    I would love it if it happens, but I don’t have high hopes, and I certainly won’t be shorting.

  2. AlexP

    yes, as I said since Sunday FOMC minutes tomorrow will bring about:
    – USX moving abruptly into DCL
    – gold going into its DCH
    – stocks proving that they are into the new DC and finding the DCH at maximum SPX=2104 before renewing their intermediary cycle decline to find its ICL on Jan08 – jobs report – at some 1950 for SPX

  3. Gary Post author

    Miners are not confirming the new lows in gold. Plus they have large momentum divergences on the weekly charts.

    We should be getting close to the final bottom.

    1. David Silver

      Truncation in both GDXJ and JNUG with the inverse in DUST.
      Shorting miners and crude as of today.

    2. Mark

      I REALLY hope you’re right!
      In the meantime the carnage continues……..there are always new lows in gold.

  4. William

    Well, let’s see if XAU can hit 1,050 and then 1,030..and breakdown decisively. I doubt so. So, i’m in with tight stops again…peace!

  5. MuffinTop

    Folks, no matter what Gold does in the near future, now is the time to be bargain hunting. Below, you’ll find a prime example of a Miner that one should buy and hold onto for the next 5 years while the FED continues to screw around with their beloved SM.

    Warning: These type of stocks aren’t for the faint of heart and even though I generally tend to trade ETF’s, I do like to invest a small percentage of my portfolio into a very select group of Miners/Explorers with strong fundamentals.

    Gold Resource Corp — GORO — is a small producer that generates low-cost, high-margin gold and pays a solid dividend of $0.12 per share while you patiently wait for it to turn around and deliver the mother of all profits! And (apparently) you can opt to collect your dividends in gold coins, haha! Love it.

    From a Technical perspective: If you pull up the Monthly chart you’ll understand why this baby is a bargain. Currently hovering above support @$2, which means your risk to reward ratio is unparalleled and warrants a BUY.

    I already picked up some shares @$2.50 and will probably pick up some more around support, pending price behavior. If it closes below support, then I’ll sell half my shares and wait for a new DCL.

    You welcome suckers!

    1. Herman

      GORO is not really an example of a well-run gold miner, sorry. Have you looked into its management history?

  6. Bill in Tokyo

    Man, we’re close. Me still thinks $GOLD will hit 1030 intraday. Maybe 1000.

    I agree GDX is near a bottom. Daily MACD and SlowStoch are looking really good. And Weekly and Monthly, too. I’m not a bottom picker, so I’ll wait for a move up, then down to make a higher low, and buy that, if it happens.

    GORO, el toro. Nice pick, Muff. I like how they own 100% of their properties. All in Mexico. Volatility is high on the daily chart, but if one turns it from candles to a line chart, it’s actually a lot smoother than GDX – I mean, the volatility is still there, but the direction trends a lot more than GDX. Will study more – thanks!

    1. MuffinTop

      Thx 🙂 although I can’t take all the credit. I follow the right people, and then I do my own technical reconnaissance while zeroing in on the ones that meet my own set of rules.

      And you’re right.. these type of investments are highly volatile and I definitely would recommend two things:

      1 — Invest a 1/4 of what you would normally invest.
      2 — Volatility is to be expected in which case you should hold a basket of 4 or 5 in case one of them doesn’t work out.

      Trade at your own risk, but this sector is definitely at the tail end of a bust. Again, now is a good time for bargain hunting 🙂

  7. Hong Bang

    Good morning Guys,

    Thanks Gary, it is 7am in Ha Noi, Viet Nam, the most beautiful & peaceful city of Asia.
    Happy trading

    1. Gary Post author

      40+ days into a daily cycle with the TSI at -90 is a bit late to be shorting I think.

      We could get a daily cycle bottom on the FOMCminutes tomorrow and then bounce for 4-8 days.

      1. Tushar

        Hi Gary, I want to be a subscriber for your insight service. I know you had some promo going on, could I take advantage of any such deal? Thanks!

  8. David Silver

    Owned GORO:
    They offer unique dividends in form of collectible coins.
    Chart is and has been very ominous, thinkin she will go sub $2 in time.

    1. MuffinTop

      Ominous? No. Could she drop below $2..? Of course! Anything can happen nowadays, but you gotta think big picture.. This is a buy and hold, and right now the risk/reward ratio is in our favour. These are the type of stocks that can deliver a 1000% gains over the next few years.

      Hard to believe, I know.. but true — I’ve seen it 🙂

  9. William

    and Mr Muffin, GORO actually put in a hammer of its quarterly chart (i.e in 3rd quarter). So, current low is merely a re-testing of the pattern…if the quarterly hammer is credible then, you won’t expect this baby drift below $2…not a chance…

    1. William

      unless, of course, if it decides to do another quarterly hammer for this quarter…then, below $2 is still a possibility…

      1. MuffinTop

        Absolutely.. and that could very well happen if Gold continues to get dragged down, in which case I would wait patiently on the sidelines for another swing low.. or, it could trade sideways for a very long and boring length of time.

        Either way, bargain hunting should be on everyone’s mind right now, especially when high-quality resource stocks are trading below their intrinsic values.

  10. Anthonyo

    The Dow had a bearish reversal on Tuesday from lofty intra-day highs and finished flat; and that’s a good thing if you’re a bear.
    Let’s see if gravity and the market’s own weight will overcome the “PUSH UP” bra and jacking designed by PPT to prevent another leg down on this baby at “all costs(literally)”.
    Still a ray of hope for it.
    SPX 1500, where are ya when we need ya?

  11. David Silver

    William & Muffin FWIW (GORO):
    What’s better than GORO performing 1000%? How about 3386%, food for thought.
    Currently GORO and gold has a 11.1% deviation advantage for miners (my calculations) therefore based on my timing model theory for gold to bottom via 956.20 (-10.2% from today) will give GORO a share price of 1.43 (-33.86% from today’s share price) thus altering your 1000% projected forecast gain to +3386%!

    I personally favor ABX than SA to EGO (use to be a stalwart) than AU (use to be a stalwart) than GORO.

    Food for thought.

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