Saturday, April 23, 2016

It's official: Gold miners are in a bull market!

Here are some charts confirming the beginning of a new gold miners (and of course gold) bull market:



Keep in mind that gold and miners will correct at some point==>Buying opportunity.
Happy trading!

Thursday, April 21, 2016

Equities near All time Highs? Not according to this chart

Lately many major US equity indexes are marching higher,  approaching the previous All Time Highs (ATH)

However the Geometric Index is in a clear DOWNtrend

We noted, very early, that Geometric index never confirmed equities ATH in mid2015 (Geometric Value Line Index:Never confirmed the SPX all time highs)
Regarding Geometric index and its significance (from wiki:Value Line Composite Index).

Wednesday, April 20, 2016

SPX: Approaching All Time Highs while running on fumes...

A quick update on SPX. Currently SPX is in wave iii of V of an upwave which started after the Feb lows. Currently SPX is in a strong resistance zone (VIX striking similarities and the current SPX bull trap) possibly in the late phases of an upwave, with negative RSI divergence (not a perfect situation to be a bull).On the other hand there is still a lot of pessimism in the blogosphere, making ATH or even new ATH within reach. However some bears that I respect and follow are starting to wave white flags...(Its all falling apart for the bears)

Next targets (and hopefully reversal levels), 2107.3 and then 2116.5
Have a nice day!

Saturday, April 16, 2016

Gold and gold miners(GDX):Ongoing formation of an inverted Head and Shoulders-EW count and Fibo levels

After a textbook impulsive wave up [1-2(flag)-3-4(triangle)-5], now gold is in a correction (a,b,c) leading gold price to support zone around 1160 or a bit lower.

When the current correction ends, a powerful wave 3 will ensue leading gold to 1450 level or higher.
About a month ago we posted the following chart regarding GDX (Gold Miners (GDX) long term bottom) which pretty much nailed GDX price move up to now.

Today we update our GDX chart:

Wednesday, April 13, 2016

VIX striking similarities and the current SPX bull trap

There are some striking similarities between current VIX price pattern and a previous VIX rounding bottom back in Oct-Nov 2015. Back in Nov 2015 the rounding bottom signaled a top in SPX.

Our current view based on VIX pattern and our ATR div system-not shown here- suggests a significant fall for SPX in the following weeks

Saturday, April 2, 2016

Current rally is running on fumes and a concrete wall is approaching fast!

Current SPX rally although impressive is running on fumes.There are numerous divergences in RSI, MFI and NYMO suggesting at least a significant retrace.
SPX is approaching fast a very strong area of resistance at 2075-2125 where a huge distribution happened for several months last year. 

Next couple of months will be very interesting....