88 thoughts on “CHART OF THE DAY

  1. Bill J.

    Looking at “Quarterly” chart and drawing the similarity in Year 2000, HUI or GDX can correct up to 20% in March before a real breakout in the quarterly chart happens in the 2nd quarter…

  2. RayB

    I agree Gary .. since Gold just broke out of the Pennant Flag to the upside .. I would be shocked if it went down now also.

    1. RickyBobby

      I have a coworker who keeps buying DUST over the last few weeks – he’s almost wiped out his trading account!!

      1. Anthonyo

        “wiped out” or “striking tje jackpot” are both functions of time. To the inexperienced novice wanna be traders, time is measured in micro seconds.

  3. Stefan

    In the 60min chart it looks like we are in an A-B-C wave correction right now. A and B wave is complete and the C-wave is just getting started. It will probably take gold to 1203ish imho

  4. Alexandru Popovici

    Gold proves that it is consolidating in a symmetrical triangle instead of in a pennant pattern.
    This will be clearer as gold finds its DCL somewhere around 1205 by Tuesday/Wednesday.

  5. Gary Post author

    Looks like the dollar is in trouble. It’s going to be tough to keep gold down if the dollar is tanking.

  6. Chris

    Next when gold starts to break $1200, and enroute to 1170-1180, the script gonna be…. well gold is in its timing band into it DCL…. lol

  7. Gary Post author

    Traders have been chasing their tail trying to out trade the baby bull. Baby bulls aren’t trade able. You just have to get in and hang on.

  8. Enoch

    silver is extremely week and is looking like it is ready to head lower, the last 2 weeks looks like it is in a declining channel with bottom targeting at 14.8 right now.

    looking at YEN/GLD correlation, see how it is closely scripted? GLD just hit the top yesterday, and is now correcting. the moment it breaks the 1200 area will create a huge panic sell which will line up to this chart. We buy back after gold dips below 1180


    1. Herman

      silver is not confirming this ‘baby bull’ at all, Gold/silver ratio keeps rising, it hit 81.6 today.

  9. Chris

    I stick to my trading discipline. Exactly. Silver is so weak. Havent made a higher high. So , gold is doing fib retracements. Its an odds thing. Chances are higher. And really bulls, aint trying to be a dampener. Even golds bull could be fake. Just a bear rally. But I also doubt so, and hope not. Because I really wish that gold is in a bull run. Then we could all make tons of $$$.

  10. Chris

    In previous bull markets, silver doesnt underperform gold with such big divergences. By now, silver should have made a higher high. But it did not. Trade what u see, not what u think.

  11. Bill

    Gold id down exactly $1.65 and the ” Gold is going to $500 ” clowns litter the forum, short it then tough guys and show us what you got…

    Oh and by the way it is also Metals OPX for those who didn’t know…

    1. Herman

      the bigger picture here is that we are in a deflationairy trend, that is accelerating towards a bust. Thus, the bear market in gold is not over and we are experiencing a bear market rally. It is that simple.

      1. Herman

        When gold is stretched a bit further towards 1300/oz, that would be the sweet spot to buy DUST.

        Because I expect EUR/USD to sell off further towards 1,20, this could put support under the current gold price level, or even elevate it towards 1300/oz. So buying DUST now feels a bit too risky, I first would like to see what a further sell-off in USD does .

  12. Stefan

    Why paint it in black or white? It’s an infinite number of gray area’s. We just try to figure out what is going on here.

    This is clearly a bear rally, we are heading down soon, probably next week !

  13. Stefan

    Yes, I bought DUST yesterday, with the naive silly gap up move in GDX.

    There is no spark in it after the break out, I think the top in GDX is in.

  14. Alexandru Popovici

    I am not a swing trader. I am not shorting an asset on secondary trend – I only sell part or all of the position until I get another low-risk-high-reward entry –> i.e., I am not searching to make a re-entry at a lower price; actually it is more often that I make the re-entry at a larger price, but I do not care about that, it’s my reward-risk ratio that I look at.

  15. Alexandru Popovici

    Gary, I don’t know about the dollar yet, I have a 51% bullish view on it but I definitely have a 90% bearish view on GDX, as a lead for gold.
    Therefore, I think it would be too risky being fully invested in a long-gold position now.

    Miners stand ready:
    – to chart a swing high
    – to collapse the lower trend line of the rising wedge.

  16. Enoch

    GLD looks very corrective this morning. this is a bear rally, look for the entire sector to crash shortly

    1. Herman

      resumption of the sell-of in USD may keep gold around this price level or even prop it up higher. I don’t think it will crash right now, but when the countertrend rally in stocks and oil finishes.

  17. Anthonyo

    I say “maybe bull”, you say “baby bull”; let’s call the whole damn thing off. lol..

    Gold’s “maybe bull” will have a hard time staying above 1250.
    Breaking 1222, and then 1173-1179 will mean the downside is wide open.

    Reply ↓

    1. Chris

      Lol, I agree with Anthonyo. Its a maybe bull, not a definite baby bull. Actually, my stance for spx is 2300-2500 since the 2009 lows. That has always been a charted target. But with this drop, I had my doubts. With this bounce, this target is alive again. And if spx is heading there, who says gold doesnt turn down? Gold doesnt have to be in line with SPX, because spx at 2500, is not a bubble phase.

      1. Anthonyo

        Yes SPX is heading to at least 2050 area in this leg, I suspect. Beyond it, ther eis a chance it may again go back down and revisit the 1700-1800 area again, but small chance.

  18. Enoch

    picked up some energy stocks while I wait for the mining stocks to correct and reload. certainly oil could go both ways but my chart looks like after it has broken out of a down channel trendline, it has backtested the breakout and im going to see if it has legs to push towards 40 now

  19. Alexandru Popovici

    bought some CONE too – excellent results.
    Thus, I have pilots in 2 stocks (HOFT & CONE) and in PST – double shorting t-notes

  20. Bill

    SEARS is about to implode

    SEARS about to Tank:

    Sears CEO says sales tax, minimum wage contribute to woes

    February 25, 2016

    Sears warned earlier this month that it didn’t expect to fare well in the quarter ended Jan. 30 and said it would accelerate 50 planned store closures this year as well as look for other ways to cut costs. The company ended the year with 1,672 Sears and Kmart stores.

    Sears reported a loss of $580 million, or $5.44 per share, compared with a loss of $159 million, or $1.50 a share, in the year-ago quarter. That was worse than analyst forecasts for a loss of $2.62 a share, according to S&P Global Market Intelligence.

  21. pacoquin in spain

    IMO no matter what u say Gold is going to fall. FED can continue with its game for a while, trying to dress up its SP window for the world, but it willl also break 1800 red line.. in days or weeks ti. There is something not many people consider or pay attention to it, which is historical patterns, and right now, either we are repeating a 2000 pattern or 2008, so choose the one u prefer… only difference ? and its a good one … correction so far 15% and manipulation starts ? ok.. another 15% below 1800 and we are set. Thats FED. CHINA is going too help.. believe me … and American Stock market cant take that without loosing pants. Then yes, once China finds bottom… will have real chance to make big money… rgds.

    1. Al

      Whilst I can understand the reasons technically why some are saying we are just about to roll over, this could just as easily be digestion and consolidation above $1200. I have to say though (as a few others have pointed out) that although silver does come late to the party on many occasions, I don’t like the way it is trading compared to gold. Let’s see where we finish the week gents.

      1. Herman

        the most important, bigger picture, fact to consider here is that we are in a deflationairy trend, accelerating towards a bust. I understand all the reasoning and chart reading, but it will prove utterly deceptive. Because the main trend has not changed, this is only a countertrend move. Same thing happening in oil; oil is now were gold was a few weeks ago.

  22. John Galt III

    James Rickards:

    “Unless the S&P 500 is below 1,615 by March 11, the FED will raise again”

    Looks like another raise will happen. Not sure how the Yen and Euro will like that. If the dollar breaks 100, currently 97.28 and rising, the PM’s will have a nasty correction.

    There is a gap in the GDX around 15 – where the 200 day MA is currently and that will get filled if the above happens. Could create another buying opportunity for those who missed the last move.


    People have commented on the gold /silver ratio. Gold beats silver in the beginning of a PM bull market. Silver lags and catches up. Example: Gold double-bottomed in February/April at $255 in the year 2001, launching the whole bull markets in PM’s. Silver started 2001 near $5.00/oz. and didn’t bottom until November 2001 when it came in at near $4.00/oz.

    1. Herman

      I agree, gold could hold up pretty well here, even rise to 1300/oz, but we are in dangerous territory here. Once it starts dropping, it will drop like a stone, and someone who is very bullish right now, will not know what to do when it happens.

  23. Stefan

    Both Gold and GDX is building a huuuge cliff, oh sorry an right extended B wave, when the C initiates, look out.

    Be careful out there, this bear rally is running on fumes !

  24. Alexandru Popovici

    – stocks pulled back
    – gold topped short-term
    – treasuries topped too
    – and eventually stocks have recovered strongly.

    all have gone as expected –> I am long 2 stocks 17%, short treasuries 15% and 68% cash –> this cash stands ready to be reinvested in gold.

    1. Alexandru Popovici

      …miners ready to succumb today onto the lower trend line of the bearish wedge!
      I maintain my forecast for DCL in miners and gold by Tuesday/Wednesday –>

    1. Alexandru Popovici

      Chris, mind that I am not heavily invested in stocks.
      If I were 99% sure that the bottom is behind I would be now about 33% long stocks instead of 17%, and would not have cared about gold or shorting treasuries anymore but I would be getting focused to gradually rise to 90% long stocks.

      A strong stock (as I hope HOFT and CONE are) can rise while indexes suffer minor, natural pullbacks.

  25. ChrisG

    Ok. Ya, I just sold my swing index longs. Day trading until more clarity. And keeping powder dry to buy gold too.

    1. Alexandru Popovici

      yes, our entries, exits and weights may be different because we trade in different realms: you are a swinger while I am a trender.

  26. Herman

    Gold/silver ratio at 81.8 now, silver can lag gold for a while but it takes too long here. I think G/S is already signalling the coming drop, I expect this will take G/S ratio towards 100.

  27. victor

    Market will open in 1,5hrs on my clock, I don’t like this setups…, will short SPX today, upraise is limited, false and dangerous …, if it drop on Monday – look for gold 1260 …, the way gold withstand and accumulating look very bullish… it’s like a hawk waiting for a moment…

  28. Enoch

    so glad I exited all my mining position and jumped into energy mid day yesterday as I wrote on my previous post. as if I am expecting gold to correct below 1200, then I am assuming the stock market along with oil will move higher so this flip flop is starting to work out

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