Miners Lagged Slightly Today
Gold and Silver rallied to new cycle highs, but miners lagged slightly. We should have seen high volume 6%+ days in miners with gold decisively above $1,200. Instead, we got moderate volume and selling on strength numbers in GDX.
Today’s action in miners suggests we are closer to a cycle top than not. Waiting for a decent pullback can be difficult. However, investor patience is usually rewarded. The potential drop into an 8-year cycle low is still plausible until March. Therefore, we need to proceed cautiously and err on the side of caution.
-US DOLLAR- The dollar had a strong trend day lower, and prices are correcting the intermediate-term advance. This is a much broader correction than I was anticipating. Initial support arrives around 99.00, but we could see as low as 96.50 before reaching the bottom.
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-GOLD- The gold cycle continues to advance, and we are awaiting a swing high and a price break of the cycle trendline to signal a correction into the next common cycle low. If prices exceed $1,233, the next level of resistance resides around $1,245.
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-GLD- Prices closed for the first time above significant resistance. It will take three closes above this level to successfully defeat it. The volume in GLD has been lacking.
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-SILVER- Prices reached a high of $17.25 today, and we are pennies away from making a higher high. I still expect the low to mid $16.00 range on a pullback into the common cycle low.
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-GDX- I wasn’t impressed with the bullish follow-through today in miners. With gold back above $1,200 prices should have been up 6%+ today. We should be close to correcting into a cycle low. $20.50 seems like a logical destination. Once there is a swing high I’ll update targets for NUGT and JNUG.
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-SOS- Significant selling in GDX today. Data from WSJ.
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-GDXJ- I would have expected higher volume today if this was a legitimate breakout higher. This still looks to be the topping process into a cycle high.
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-SPY- Prices closed just below the 10-day EMA but not enough to signal the C-wave lower.
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-WTIC- Prices formed a bearish shooting star today after testing the trendline. Bearish forces should finally begin to pull prices lower.
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Prices could push a bit higher but should commence to rollover later this week. The dollar is oversold and due for a bounce. The next swing high should mark the top, and I’ll keep members informed as the cycle advances.
Thankss for sharing