DEAD Ahead Captain, some ways off yet.......
and why does anyone care, anyway ?
Whale Island lies just over the STRAITS of HELL, you remember that unclosed gap from the ham-handed short paper gold contract that cleaned out the bids floor to rafters like a dust explosion. Either a rookie or TPTB wanted to make the point Gold was Doomed. Awww too late isnt it, with NIRP, ZIRP and whom knows whatever the latest Alphabet Frankenstein the Monetary Authorities create.
The STRAITS are located and easily found btwn $HUI 280 and 300. Created by selling enough paper contracts to equal TWO (2) years of Newmont's production, in ONE DAY, cleaning out all the bids from ceiling to floorboards. . Clearly UN-Economic that was a signal from HELL that GOLD was doomed, from, in my opinion, THE POWERS THAT BE [ TPTB ]. We shall see..... Between 30 & 31 on the GDX, the Straits of HELL Lie in wait for the unwary gap jumper......
Why this ? Why now? Similar to the $HUI, the GDX Gapped down during the week of Apr 15, 2013. “Someone” decided that needed to be done and it was in resounding fashion, so much so that there is still an unclosed gap btwn HUI 280-300, and GDX 30-31. Why is this important ? We have been below that point for 34 weeks. Weekly charts are pretty strong, and we expect this to fill. It need not fill, it could be JUMPED. IF that were to happen, we would have one of the LARGEST ISLAND BOTTOMS in recent market annals and point to a possibly cataclysmic rise in Gold Miner Shares as the GDX & HUI. IF these averages just wade thru the Straits of Hell rather than jumping it, well that will be good, but not the same.
Lets address the WHY NOW? Point & Figure
charts as below are considered arcane or exotic depending on your vocabulary. I like to use them like a Builders BluePrint for a Work-in-Progress, that is,an architectural framework of sorts that points out likely limits of the current structure, and thus can change with other shifts in structure.
Here we see a potential trend neuter point of about 18.5 on the GDX, and an Upside potential of 34.5, far North of the location of The Straits of HELL. Be they a figment of my imagination or not, they represent to me a significant turning point.
“Once bitten, twice shy” describes what happens when a P & F target is missed. BUT “ Three (3) Times, a Charm” is also valid with this method. I will be watching it with great attention......to see.......Is this a real BULL MARKET ? Subscribe & Ck it out !!