Bear flags post in a bear market
Bull flags post in a bull market
Right?
One would think.
It’s different though, if you’re a rabid ‘not-right-in-the-head’ gold bull.
The professional does not care which direction the market is heading. The only important thing is, and to paraphrase Livermore:
‘There’s only one side of the market to be on … and that’s the right side.’
GDX has posted and tested a bear flag.
At this juncture, it’s heading lower … possibly to test between 15 – 17, as was just mentioned yesterday, by Van Metre (time stamp 10:00).
Conversely, in the general equity markets, there’s reversal action with the S&P, Dow, Russell, all lower.
On top of that, bonds are in their own reversal (up again in the pre-market) as well as the dollar.
In the Van Metre link above, in addition to comments on gold, he also sates ‘the market is not prepared for a bond (and dollar) reversal.
When markets are sure of one thing and the other happens, it’s very ugly.
Charts by StockCharts
