Tuesday, April 29, 2014

Here are Some of the Elements in the CONFIRMED PM Long Signal

More or less its been one long signal since April 2nd, but has unfolded very nicely, and also has had a number of validating measures achieve their necessary levels.
Basically we drew this chart in MARCH, and drew in the Blue SRL's ( Speed Resistance Lines, which represent rates of Climb or Decline).  The "Clouds track where the price has been,  (and project it forward 52 days, indicating the "Market" has it's own memory).
             Thus I was able to draw a Support Zone Box, and project some Dates, which were START and STOP dates for the GDX to exit the box.   I use GDX because it is an ETF under the control of its MANAGERS (for profit) rather than an average, I think it gives us a more independent picture.

     That is NOT about STARTING a BUY signal but it is about tracking how tough GDX held up, while all the rest of the Industrial stocks were going to Hell in a HandBasket.   This does not touch on the Volume Dynamics that are so important to catching the Signal.  However, we can follow the money !!

    This represents the way the tides of funds go in and out of the RYDEX Precious Metals funds, so is a proxy for the Flow of Funds into the PM Complex.  It is now Low Tide and the Tide is turning from Ebb to Flood.

Now the tide coming in is good, but how high is the tide going to go on the next Flood Tide in?  I don't really know cause I don't pretend to predict, but it seems as thought over the same period as the above chart, the cumulative $$ value of the PM COMPLEX stuff held by RYDEX is methodically increasing.

  IMO, no reason to be labor the point, as these are not my critical measures, like GIMBO, but as we update we post some new stuff. !!

Good luck.

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