If GDX continues in counter-trend action, an equal distance wave ‘c’ is the area GDX, 37.80.
Fibonacci Day 21 from the lows in late November, puts the counter-trend top on or about, December 23rd.
With the stimulus bill essentially a sure thing and gold going nowhere, something else behind the scenes is happening.
We’ll stick with the Van Metre assessment that stimulus is deflationary; Until proven otherwise.
From ‘uneducated economist’, linked here, he proposes there’s slight of hand going on yet again. The inference is, that somehow holding the actual physical cash note may (not advice, not a recommendation) become very important.
Following up on his comment is this: There’s a limited amount of actual physical currency in circulation as detailed here.
So worthless paper fiat currency, in an ironic twist, might become valuable for a short period of time … yet to come.
The job of this firm is not to figure out the nuances and details of the Fed.
The job is to identify probability and opportunity; then take advantage. Interpreting price action takes decades to master … it’s a full time job in itself.
With that in mind, we’re currently short (not advice, not a recommendation) Oil & Gas via DUG.
The senior miners are on track to test the 37.50 – 38.00 area. GDX will be monitored if/when it rises into that level. If so, it could be another low risk short opportunity.
Charts by StockCharts