28 thoughts on “Volatility Coil – What Happens Next?

    1. Gary Post author

      Just holding that last 25% position for now unless gold breaks the triangle trend line.

  1. pepe le pew

    GDX goes green! Oh, Jorgy, your smug comment doesn’t seem so clever now, eh? Slice o’ humble pie for you today!

    1. Jorgy

      Just filling the gap… It’s not how you start, but how you finish and gold’s IC is running out of gas! Ol’ DUSTy is headed for da moon! ?

  2. Bill

    As noted you short Gold and Miners at your own peril….’ IT IS DIFFERENT THIS TIME “

  3. MurmurHudson

    Mar. 9 at 10:43 AM JamesMadison
    $GDX some institution just bought $150M block trades in ABX. Bringing up the whole GDX with it. Along with option buying.Something happening

  4. victor

    Thank you Gary, “volatility coil” … I observed such pattern in a past and it made me stay away and wait but it can be as a signal for buying when on dip…

  5. Gary Post author

    Remember back in Dec and January how I called attention to the huge volume spike in NUGT and said it would lead to a big rally? The usual nitwits said I was crazy or found all kinds of excuses for why I was wrong. Well we know how that story ended.

    Check out the chart of LABU.

      1. MuffinTop

        Bought some on Monday @$7.50 and a few more this morning when it bounced off trend line support @$6.25 🙂 I’m liking the look of this so far…

    1. Huckleberry Finn

      For 3x etfs volume will always increase as price decreases as people commit the same amount of capital to it. In fact it will increase for almost any etf/stock. You keep pointing this volume increases. I don’t think it means what you think it means.

  6. Alexandru Popovici

    yes, VIX is going to be rejected by its 200dma too.

    I bought earlier today some ORBC at 9.24 with the money from the sale of gold on Friday.

    1. Alexandru Popovici

      ….it was also on DEC2 that late bulls should have got the dumping signal from such a dojis-line-up pattern, immediately after my maximum target of spx=2104 had got hit.

  7. Stevie

    If QE works then why are all major indexes around the globe down 10-40% over the past 12-20 months?

    1. Gary Post author

      Steve,
      That one is easy. Because all stock markets are due for a 7 YCL. It has to do with sentiment and regression to the mean. The rubber band can only be stretched so far for so long before we have to have a profit taking event. That’s all this is: a profit taking event.

      Once it’s over and it’s looking more and more likely that it already is, then the last phase, the bubble phase will begin. It will be driven by central bank monetary mistakes as that is what drives all bubbles. Easy money.

      We’re already there with negative interest rates all over the world. Seriously how stupid can central bankers be? They clearly can’t learn a lesson no matter how many times they make the same mistake.

      1. Richard

        Gary,
        “Seriously how stupid can central bankers be? They clearly can’t learn a lesson no matter how many times they make the same mistake.”

        They attempt to maintain the status quo. The are reactionary and deal with the immediate problem. They do not care about problems that arise in the future as a result of their actions today. At some point, these guys will all be gone and it will be someone elses problem.
        They will make the mistake over and over again. It is their nature.
        It is like unfunded liabilities here in the US. Everybody knows the system is broke, but nobody is putting a plan in place.

  8. Brent

    Gary,
    Today’s BNN guest theorized that because of Canada’s aging population, negative interest rates to make up for lost growth are almost assured…(as Poloz put out there some time ago).
    Gold is now pulling back, while the Canadian dollar is up ( now giving only 25% discount to $US buyers of Canadian gold miners).
    With this is mind, how would you best time a move into Canadian gold plays this year?

    1. Gary Post author

      It’s too late to be buying now. If you’ve held all the way up then you should be scaling out. A small position as long as gold holds above the triangle trend line is OK, but seriously one doesn’t start buying after miners have already rallied 85%.

  9. Jacob 2

    ” Waiting for LABU “. Perhaps For a faw a Couple of penny stocks with compelling charts and insider buying.

    ARNU: Arno biotech
    lYD.TO. lYdian intl … A gold explorer stock
    (Sorry no charts on my phone).

    Could’t say NO .. So Bought a little.

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