GOLDBUGS AMEX Goldbugs Index (GOLD)

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~~~ The Ord Oracle ~~~
By Tim Ord | April 10, 2017

• SPX Monitoring purposes; Sold 4/5/17 at 2352.95= .4% gain; Long SPX on 3/24/17 at 2343.98
• Monitoring purposes Gold: Sold GDX at 24.33 on 2/22/07 = gain 20.15%; Long GDX on 12/28/16 at 20.25
• Long Term Trend monitor purposes: Neutral



On previous reports we where conjecturing that tax time (April 15) could be a low: our thought now it could be a high. The pattern forming on GDX appears to be drawing a “Rising Wedge”. This pattern works modestly higher as volume decreases and that pattern appears to be forming here. Last Friday’s pattern appears to have been “Upthrust” (a breakout that failed). To have an effective breakout above previous highs the market should produce a “Sign of Strength” (SOS). An SOS is a strong price move accompanied with high volume and as you can see on the price chart above, there is not strong price move or high volume. A “Rising Wedge” pattern has a downside target where the pattern began and in the current case would give a target near 21.00 range. The top window is the Bullish percent index for the Gold Miners index. The bullish Percent jumped form 32% in mid March on point and figure buy signals to 39% recently and not a strong showing on this index. If the index jumped to over 50%, could have suggested something big on the upside may be beginning, but that did not happen here. Still looking for buy signal that could develop near the 21.00 range. Sold GDX at 24.33 on 2/22/17 = gain 20.15%; Long GDX on 12/28/16 at 20.25.

http://www.talkmarkets.com/content/us-markets/trin-and-tick?post=130963

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