Our recent weeks of trading have had a lot of choppy sideways action, and this gets frustrating to both the longs and the shorts. I am expecting a sell-off in Gold, Silver, and Miners, but they could be the next best buy of 2016. Let's take a look.

Below is a partial of the weekend report.

WTIC – Break out and follow through as expected. Please read the chart.

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Please notice that when OIL bottomed in 2008-2009, it also had a sideways choppy period for weeks like we just experienced and then it ran strongly.

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We had been looking at and discussing a variety of Energy stocks throughout 2016 since February like CWEI, RICE, WPX, AREX, SDRL, AXAS, MRO, CHK,and many more. 

GOLD , SILVER, and MINERS

GOLD– I am expecting the dip into an ICL. A great buying opportunity should be coming soon, but this drop may cause some Gold Bulls to sell and not re-enter. We will be ready to buy. See the chart.

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GOLD WKLY– Read the chart please.

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SILVER – Read the chart please.

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LET'S LOOK AT MINERS

GDX– In Bull markets, Miners consolidations can lead to very profitable moves higher.

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GDX – A back test of the 200MA would be a drop into an ICL, IF it happened. This weekly chart is getting oversold, that is good news.

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GDX WKLY with a drop into an ICL, Elliott Wave style. please read the chart.

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I wanted to zoom in on that quick plunge into an ICL, since we are likely near one now.

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Since the sideways chop and consolidations can be frustrating to many, causing them to want to sell and give up, I want to re-post this chart. This was an XAU consolidation in the Green circle. Again, some are getting frustrated and tired of waiting in this current sideways action. This was a chart that I posted a while ago, so you can ignore what I wrote on the chart then, and just focus on GREEN CIRCLE. You see 3 months of just sideways chop & consolidation. NO MONEY TO BE MADE TRADING THEN. CHOP CHOP CHOP and if you kept jumping in and getting stopped out, it was frustrating. Now look at that run-up after the 4-month chopping action labelled ‘the real rocket’. BOOM!

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So, basically I am expecting that a pullback will end this choppy sideways action. I am pointing all of these reminder out (and will keep doing so) so that my readers don't get frustrated with the current price action in Miners and say, "This rots, I hate Miners. I’m not buying this weak sector any more!” Not that you would, but some do, and I think GOOD TRADES are fast approaching.

So – look at the following 2 charts of GORO and GSV and you see some bullish action even now while most Miners are chopping sideways and pulling back.This is making me think that when Gold, Silver, and the Miners finally take off upside, Miners may really spring into action as buyers step back in (and some shorts cover).

GORO

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