40 thoughts on “CHART OF THE DAY – POTENTIAL TREND LINE BREAK

  1. Alexandru Popovici

    Gary, going long at session-end may be a bit too late because EURUSD, once it touches 1.08 in two days or on early Thursday in Asian trading, it should roll over.
    Why?
    Because GBPUSD still has to run on its upside (to top in a week) while EURGBP should top quickly this week so that its mirroring pair (GBPEUR) put its DCL.
    Thus, we have EUR resuming its weakness against GBP in 2-3 days and GBP too falling in its daily cycle decline after topping on Friday/Monday.

    All this means EURUSD falling after a strong upside to 1.08 into FOMC meeting –> BAD FOR GOLD/MINERS !

    Thus, we need to see the trends, take action quickly by buying and then standing ready to dump the gold/miners ’cause a strong reversal is set to ensue by currency pairs.
    We may not have a lower low but…it will be a roller coaster for sure !

  2. Alexandru Popovici

    Terry, no, no, by FOMC gold at 1300 in no way.

    Gold should top at some 1230 before FOMC as EURUSD advances towards 1.08 in the next 2 days and then both back down in shortened daily cycles for EUR and gold.

    If FED rises its rate to 0.50%, we may get lower lows by Friday DEC15 (and the IH for USX in a bull trap).

    1. GMoney

      This may be slightly off topic, but does anyone have any recommendations for promising junior Gold mining stocks?

      1. LiesandDamnLies

        GMoney

        If your looking for junior miners. Have a look at the following Australia two gold producing miners. EVN.ax and NST.ax both are well priced currently close to their lows and both have had a series of good exploration announcements increasing their reserves and mine life. One final Aussie gold stock is GOR.ax an explorer with large gold reserves just announced a JV with Gold Fields Ltd ( a large experienced South African gold company) to begin the mining operation.

        Check them out

  3. Gary Post author

    I have no clue on these day trades but gold is overdue for a yearly cycle low. The rallies out of yearly cycle lows tend to be the most powerful, and if we are in a new bull market, the rally should last at least 3, and maybe 4 months.

    1. Alexandru Popovici

      Indeed! But inter-currency correlations + FOMC in just 2w indicate we are squeezed so that this time we may not have the usual room of V-rallies out of YCLs.

      Furthermore, such a roller coaster (EURUSD up to 1.08 + gold at ~1230 in 2 days and then back down) would be the kind of scissoring to annoy and kill many bulls and bears –> excellent pre-event of an YCL πŸ™‚

      Furthermore, the former YC of EUR was a bit short so that a 13-month YC extending into December would fit in nicely –> FED is key here, how much it raises, but we will have the roller coaster anyway!

    2. WallStreetJesus

      I wanted to let you know I think you are doing a great job. This is a guessing game and nobody really knows what will happen next. You put up with a lot of critics which says a lot.

      Trying to time the market is a losing proposition in the long run. Its difficult enough just trying to get the trend correct let alone trying to trade in and out of the market. If you are able to do that on a long term basis congratulations to you. Not many people can do that.

      The big money is made is getting the trend right and just setting tight. Sure there are drawdowns but that’s life. You are going to get left behind trying to time the market 9 times out of 10 in my opinion.

      It is amazing how market sentiment can change in 6 months. Sentiment towards gold right now is the most bearish I have seen in quite a long time.

      Palladium is up $17 today. One of these days platinum will wake up – who knows when – 6 days from now or 6 years from now.

      1. Alexandru Popovici

        it is rare how well everything falls in as neatly as now underscoring a damaging roller coaster for EUR and gold/miners.
        I am holding my gold and then dump it some 1230 in 2 days. I rely on EURUSD being forced to advance violently by Wednesday at 1.08, which is pretty sure bet.

  4. ras

    Weekly trend is down. Nimble traders may eke out a small gain. Up to the individual. Hard to get excited about a wet noodle bounce.

  5. duckwhorocks1

    Short 500 TCK at 26.45. That SOB has a had 600 run from the bottom and everyone and their mother is long.

  6. Alexandru Popovici

    Segments rotation gains speed: Utilities have a decisive follow-through while many offensives provide swing highs.
    Nyse Composite, my favorite broad index, has also charted its swing high — MIND ITS TRUTHFULLNESS: IT HAS HAD LOWER LOWS !
    SPX and DOW are bullshit indicators.

  7. jonsyl

    look at dollar, no sign whatsoever of any reversal. It may top with fomc announcement and reverse but best to wait for actual evidence. To guess on this as some kind of gold bottom is a complete crapshoot which most here keep hoping for and losing.
    when this thing turns, it will be evident, with plenty of time to ride it up otherwise a waste of time and money.
    those making bottom calls, hope that they are right once in multiple attempts, so that they can point back on that one time they were correct.

  8. Herman

    I am closely watching the short-term rate; it has to roll over for gold to start going up again. Once it reverses, rate could go down very quickly.

  9. Alexandru Popovici

    …in continuum with my 1st post to Gary above, GBUSD does exactly as I expect: to rise quickly to tackle its 50dma for the last time and penetrate it decisively so that it would go producing a right-translated daily cycle into Monday.
    With GBPEUR (the mirror of EURGBP) feeling the urgency of reaching its DCL we have through the next days EURGBP up, GBPUSD up even more strongly, HENCE EURUSD TO SURGE VIOLENTLY FROM SUB-1.06 THROUGH THE NEXT DAYS.

    Look for clues into these pairs and BEWARE OF GBPEUR REACHING ITS DCL – IT WILL BE THE TOP OF THE ROLLER COASTER FOR EUR, HENCE FOR GOLD/MINERS!

    1. daverobson

      Alex, so you are saying ride gold short term up get out and reenter later after Fomc meeting ? Recovery will not be v shaped after ycl ? But you still think gold might retest high 1300’s in late January . You also said this first daily cycle in gold and Eur might be short. If that’s the case, I doubt gold gets up in 1300 ‘s in January. Any thoughts? Thanks

      1. Alexandru Popovici

        Make no mistake, just as Duke sees EURUSD at 1.09 in 6w, the same I think we may see 1300 in gold by the end of DEC but first – the roller coaster!

        It is more likely that YCLs in EUR and Gold have yet to be set on Thursday, DEC15, for reasons presented above.

        1. daverobson

          Alex that is a bold call! Ycl in gold on Dec15,….. looking forward to what will transpire in the markets …..

  10. Don

    Alex, what is this “scorch” thing you have been talking about? I am assuming that you see a sharp fall in the stock market. I believe that is highly likely and it is possible that we have seen the absolute highs in the S&P already.

    1. Alexandru Popovici

      by “Scorch” in general I refer to a secondary/counter wave of Lady Market’s sentiment, of very strong intensity, paving the way for an extended principal move (both in amplitude and in time span).

      Alternatively, we may call this an EBB πŸ™‚
      Think of a tsunami: it first produces a tide, then an ebb and then a tide of fantastic amplitude.

      Now we’ve had the first inflationary impulse and it is over (just a potential bull trap likely next week), now the SCORCH (or the Ebb) ensues through JAN and then the multi-decade inflation.

  11. Alexandru Popovici

    Dave, I am not making a call on YCL in gold on DEC15 (I only said it is more likely to be then due to a Trump-hostile FED + EUR cycle considerations).

    My call is another: THE ROLLER COASTER IN EUR AND GOLD/MINERS – TOPPING IN 2 OR 3 DAYS VIA VIOLENT SURGES AND THEN FALLING LIKE HARD ROCKS THROUGH DEC15.
    This is my call ! If we see undercuts (YCLs in DEC) or not is irrelevant: it will be a nightmare anyway.

      1. Alexandru Popovici

        You’re welcome, Dave!
        Keep your eye on EURGBP (or rather on its twin sister GBPEUR reaching its DCL) – it is the pivoting pair for all currencies now, it sets the sentiment in currencies now hence in gold/miners.

        Bye!

        1. Alexandru Popovici

          …one last clarification: why the EURGBP pair ?!! Because it is made up of the laggard currency (EUR – at or around its YCL) and of the leader currency (GBP – Brexit is mist) in the USX basket right now out of the top 3 currencies in the greenback mix.

    1. WallStreetJesus

      Alex,

      Haha we will see if there are any violent surges coming in the next couple days.

      I would have to say at this point a .25% rate hike is completely priced in the metal markets and the dollar. Keep an eye on the 10 year. Hopefully it will settle down.

      Forecasting the markets is like forecasting the weather and we know how that generally works out.

      It is good you spend a lot of time thinking about the markets.

      On a more serious note I think you would be good at tarot cards.

  12. tater123

    Hope I’m wrong but I still think some more pullback in the market and dollar which should get gold to around 1250 then it will be another precious metal beat down … πŸ‘ŽπŸ‘ŽπŸ‘Ž

    1. Gary Post author

      This YCL has turned you extremely negative.

      All I see is higher highs and higher lows of a yearly degree. That signals a new bull market in my book.

      1. ocram

        This is a very brave statement Gary….I really hope you will be proven right since the most optimistic scenario from the majority of analysts is a double bottom at 1050 at the moment.
        if you will be right even this time,after you already called the bottom in january 2016,you will be remembered in the financial history books!!! πŸ™‚

  13. Bull

    Is this the YCL? Do you think that gold is safe from going to$1050? A lot of other analysts are calling for lower lows.

  14. Strike

    The key will be whether 1180 holds. It is an important support level defined by the classic 2013 H&S top defined by two shoulders 6 months apart at ~ 1180; the head peak at 1434 was subsequently attacked but not exceeded. This resulted in the long grind down to 1045.

    Last week we had a violent one day drop to 1170 which was quickly reversed. If it falls we may be in for another test of 1045. If not, enjoy the YCL.

  15. TennisDave

    The miner GDXJ is sure looking like a bear flag to me unless the ICL puts in a huge key reversal day. Plus everyday its looking more like the whole first half 2016 in gold was just a bear market rally and we could collapse to new lows anytime soon. I think its possible gold collapses to its industrial usage value which would be way sub $1000.

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