10:23 a.m., EST
‘Surprises are in the direction of trend’
The following quote is from this past Saturday’s update:
“It’s no secret, price action in GLD and the miners (GDX, GDXJ), has been analyzed for months as bearish.
The weekly chart shows GLD, right at the edge of a terminating wedge; about to break lower:”
Then, we can also add this quote from the GDX Short Sell, Set-Up:
“This site’s not part of the hyperinflation crowd. It’s too easy to jump on the bandwagon, get the clicks and then say it’s all ‘manipulated’ when price action does not follow the narrative.”
A firm foundation has already been laid; a bearish case for gold (the miners and silver) that includes the inverse correlation of a bullish dollar.
Both moves are currently underway.
Steven Van Metre, followed-on; highlighting the bearish gold set-up in his ‘Sunday Night Charts‘ update.
As is typical, there’s a small cadre that can see what’s happening. They are somehow able to ignore the constant media hype; positioning accordingly.
The original weekly chart of GLD below, is followed by today’s update:
Typical market behavior is to break through the trend (for however long) and then come back for an underside test.
It seems that anything related to the gold (silver) markets is an overcrowded trade. There are too many rabid bullish fanatics.
We’ll stand on the sidelines for this one (not advice, not a recommendation).
Charts by StockCharts