Miners are approaching key resistance levels, and they are entering another timing window where a top could form. A top isn’t guaranteed, so I won’t attempt shorting here. If prices begin to rollover, I’ll revise and update our correction targets. -GDX- Prices are approaching triple resistance at the 50% retracement, 200-day MA, and […]
Continue Reading →My timing window for a cycle low was wildly unsuccessful; we are now faced with two scenarios. Scenario 1- Metals and Miners put in abnormally shallow cycle lows January 27th, and we are 5-days into a new cycle. Scenario 2- This cycle is expanding due to continued dollar weakness, and the correction is still […]
Continue Reading →The correction I’ve been expecting is indeed delayed, but evidence still supports its arrival. Volume in metals and miners should increase as prices breakout to new highs; it hasn’t. Silver makes new intraday highs but then closes lower. And there was selling-in-strength today in GDX. Those factors are supportive of a top and not […]
Continue Reading →The ADP employment numbers revealed that 246,000 private sector jobs were created in January, compared to just 151,000 jobs in December. It appears small companies are gearing up for lower Trump tax rates, decreased regulation and perceived fiscal stimulus. This mindset is supporting stocks. A strong stock market is likely to put pressure on […]
Continue Reading →Everything seems to be on track, and precious metals and miners should reach a tradable low next week. The only fly in the ointment is silver. A bullish engulfing pattern formed on Friday when prices rallied back above $17.00. However, volume was modest, so I think it was just temporary short covering. Miners closed […]
Continue Reading →Metals and miners may have topped today, but we won’t know until each close beneath their respective 10-day EMA’s. The dollar tested the 100 level again, and it should bounce as precious metals correct. Oil is in a drawn out topping situation similar to that of mid-2015. We may get a decent short play […]
Continue Reading →The common gold cycle usually averages between 22-26 trading days between turning points. I fully expected a cycle low to form this time, but it now looks like we will see a high instead. We are 24-trading days into the current cycle, and prices should top between now and Wednesday. Then prices should reach […]
Continue Reading →Gold and silver reacted as anticipated, but the unexpected strength in miners surprised me. Miners have a tendency to lead precious metals, so the sudden change got my attention. However, the reversal on Friday may have marked a top. We need to see follow-through to the downside to be sure. Prices closing above the […]
Continue Reading →Gold and silver are bouncing modestly out of the oversold conditions. I was anticipating gold prices to remain below $1,170 and silver below $16.60. Miners, on the other hand, have exceeded my expectations for an oversold rally and could be signaling a bottom. If the miners take out key levels (outlined below), I’ll change […]
Continue Reading →The probabilities favor precious metals sinking further into a major 8-year cycle low. Traditional cycle timing suggests a bottom by the first quarter of 2017, most likely in February. If this is the case, then selling should expand during the next down leg; particularly in silver as it catches up to gold. Silver prices […]
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