If you would like an email sent to you when I update the blog please send an email with "subscribe" in the subject line to traderbob58@gmail.com. To be removed use "unsubscribe".

Search This Blog or Web

Trend table status

Trend

SP-500

R2000

COMPX

Primary

Up 7/31/20

?- 3/31/20

Up 5/29/20

Intermediate

Up 10/2/20

Up 8/21/20

Up 10/9/20

Sub-Intermediate

Up 10/15/20

? 10/21/20

Up 10/13/20

Short term

? 10/19/20

? 10/19/20

? 10/19/20


Don Worden of Worden Brothers (makers of Telechart software) used to keep a trend table before his health issues got in the way. I always found it useful. Mine is slightly different. Hopefully helpful. Up? or Dn? means loss of momentum. ? by itself means trend is neutral. ?+ or ?- means trend is neutral with bias of up(+) or down (-)

Tuesday, January 26, 2016

GLD and GDX 1/26

I have not written about gold in a very long time.  Things may finally be getting interesting.


GLD got down to the lowest support line I had drawn on the chart years ago.  This would be a very good place to bottom.  I have seen very little mention of gold lately.  It seems like the bear market has worn most traders out.  This seems like a reasonable sentiment condition to make a long lasting bottom.


This looks like a classic accumulation type basing structure.  The break down a few days ago took out all the stops from weak longs.  The recovery back into the base sets the stage for a rally.  Its too soon to tell if this is the final bottom, but this is a very pretty looking bottom pattern.  I would expect some more chopping around.  Making a bottom does not mean going right into a strong uptrend.  If one wanted to invest in gold stocks for a long term position the risk reward here is very good.  One could start scaling in with a stop below the recent low.  If I am right about this being a bottoming pattern GDX will not see that low any time soon. 

I have no idea if gold will resume its bull market and head back to the 2011 high or not.  It seems due for a bull market even if it ends up making a lower high.  That could easily cause GDX to double from here. 

Bob

No comments:

Important

The information in this blog is provided for educational purposes only and is not to be construed as investment advice.