19 thoughts on “CHART OF THE DAY”

  1. MuffinTop

    Gary — This is unrelated to this particular article but what is your price projection for LABU? I’m thinking up to $15 within the next couple of months or so.

    And are you worried about this..?

    “The firm will also execute a 1-for-4 reverse split of the Direxion Daily S&P Biotech Bull 3X Shares on March 24th”

    I’m only asking because in my experience ETFs tend to react negatively when they start mucking around with shares.

      1. Gary Post author

        Brian,
        I don’t think we will see any more attacks or active price suppression. We will have corrective moves from time to time. That’s how markets naturally move. When sentiment gets too extreme there is a profit taking event to cool off, reset sentiment, and generate fuel for the next leg up.

    2. Gary Post author

      A reverse split shouldn’t have any effect on the stock. It will still attempt to track 3X’s the underlying asset. In this case XBI.

  2. David

    Gary, I agree with you. It rarely happen that gold price action just go up one week in bull market after more than two week correction.

  3. Richard L

    Unrelated Question
    Jim Rickards is touting a rate hike at the next Fed meeting in 10 or so days.
    “Rickards: Prepare for a Rate Hike in 11 Days”
    I realize most of the time he’s just trying to sell his stuff.
    Any comments?
    If there is a rate hike, what would happen to stocks, gold and miners,… and everything?

    Thanks
    Richard L

    1. Gary Post author

      I tend to think that if the S&P is back above the 200 DMA the Fed will have cover to hike again. I don’t think it will effect the markets one way or the other.

      Stocks are still early in their intermediate cycle and should continue generally higher, and gold is getting late in its intermediate cycle and should form an intermediate top some time this month.

    1. Gary Post author

      I don’t know that one will outperform the other, and if it does it won’t be by much.

    1. thebeek

      This napkin approach is right on. ABX , NMT, GG et al, with their weighting, have led GDX out of bottom. They are nothing compared to low debt, minimally over ridden, stock picks available today; that are Much better positioned for POG rise. The etf angle has been first to float. And that too will pass…./

  7. jacob 2

    FWIW: Next up: rally over-extended and shake-out of weak longs. Lots of backing and filling ahead imho.

  8. Rob

    Gary,
    Just look on the large volume on that spinning top. Look on the huge volume on DUST, it seems like institutions buying for reversal. Also majority of mining stocks showed reversal candles. 1308 is really pushing it but I can see 1200 gold by April, not too certain if it goes much lower tho maybe 1160 max.

    1. Gary Post author

      Like I said, big institutions usually manufacture a break out to sell into before a top forms. Retail traders get fleeced following charts. The big money can make the charts say whatever they want them to say. I would not sell short here. We did take profits on part of our long position, but I don’t think the rally is finished just yet.

      1. thebeek

        I suggest that 1308 is not quite the “breakout” you discuss, especially if $usd continues weakness.
        consider the 200wma or even 1380 zone?

    1. Gary Post author

      I would continue to hold maybe a half or quarter position at this point as long as you are well into profits.

      Obviously it’s too late to jump in now after miners have already rallied 85%.

      Then if we do get a breakout above 1308 take some more off the table. and if gold tags the 200 WMA take it all off the table.

      Then the next intermediate cycle low should come in May or June. That will be the time to load up heavy again.

      Right now I think the play with the most potential is in biotech.

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