Jeff Cooper: Should We Follow Stanley Druckenmiller Into Gold?
Gold rose about 1% on Monday, settling over our key 1226 level at 1232. We’ve had our eyes on 1226 ever since our piece, Gold’s Big Backtest from December. Out view at that time was that the correction from last summer’s highs was due to bottom around December on the one-year cycle. If correct, the […]
Continue Reading -->GDXJ: The Song Remains the Same
GDXJ is satisfying our 39.50/40 target projected over a month ago. This is 180 degrees up from the December low of 27.37. That seems a long time ago. It’s easy to extrapolate higher prices in the emotion of momentum. And, of course, GDXJ may have substantially higher projections. But this looks like a point of […]
Continue Reading -->Jeff Cooper: Trump, Greenspan, and Pre-Emptive Strikes
On August 11, Alan Greenspan was sworn in as Chairman of the Fed. The market peaked 2 weeks later. Following a runaway move, Greenspan fired a pre-emptive strike against inflation fears by raising the Discount Rate by 50 basis points. On Saturday, October 17, 1987, Treasury Secretary James Baker told the Germans to “either inflate […]
Continue Reading -->Connecting the Dots
Below is the daily chart of the SPX from January 2016. Note the intersection of a green trendline connecting the Feb low in 2016 with the late June low at the December pivot high and a red trendline connecting the April 2016 top, the August 2016 top and the December top. This suggests the recent […]
Continue Reading -->There Are More Bears Than Bulls Out in the Wild
Permabulls always say everyone’s bearish. And permabears always say everyone’s bullish. Neither side provides evidence for their views. So let’s see how traders are feeling into today’s inauguration: 1) VIX Spread – Bullish The 3-month VIX spread is at +4.51, which indicates traders are pricing in very low near-term volatility. This means traders are bullish. […]
Continue Reading -->Gold Is in Gear
On January 9, we followed up on our projection for GDXJ to reach 39.50 to 40. This represents a 180 degree price advance from the 27/28 low on December 20. That low was a time/price square-out because 28 is 90 degrees square December 20. This morning, GDXJ is setting a new 12 week high. It […]
Continue Reading -->If You Can’t Measure the Market, You Can’t Manage Risk
My Square Of 9 Wheel does a good job of measuring risk and identifying major changes in trend. W.D. Gann said if you can find the zero point you can measure the market. Gann considered the Spring Equinox to be the natural beginning of the year. On the Square of 9 Wheel note that 19 […]
Continue Reading -->GS Follow Up
In January we flagged a potential square-out in GS at 248. On January 13, GS left a signal reversal bar from 247.77 followed by a 90 degree decline to 231-232 in tandem with a test of its 50 day moving average. This was the first such test since GS exploded in early November. The first […]
Continue Reading -->SOX Rolls Up To Reistance
The semiconductors have been darling’s of the bulls for the last year. The SOX has hardly had a hiccup since tracing out a triple bottom backtest of the 2007 high. However, a clear 5 waves up from the 2009 low may be on the table with the SOX tagging the upper rail of a parallel […]
Continue Reading -->Why GDXJ Could Hit $35 Near-Term
We sent a note to Daily Market Report readers to sell the balance of our miners on Tuesday and our trailing stop on GDXJ got tagged on Wednesday morning. They held up relatively well yesterday with a late-day rally where GDXJ pushed into the morning gap. These late-day rallies following a signal reversal bar (Tuesday) do […]
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