Or … Who’s In Charge Of The News?
The same people who came up with the tag line appearing simultaneously throughout every major corporation:
“We’re all in this together.”
I have an engineering buddy that founded his own muscle car performance company (think “steeroids®”) and he told me the following:
“Once you get out of the corporate world, you won’t be able to think straight for about six months to a year.”
I didn’t quite understand what he meant … that is, until I left the corporate world.
It was just as he said. Six months before the fog began to lift.
Steered To and Fro:
Each corporate directive or news story is out there for a reason. Someone (much higher up) had to decide on its creation and release.
Once out of the box, you can see (if you’re awake) just how much and how deep was/is the control.
What does all that have to do with the markets?
Well, let’s take a look at the latest case of (hyperinflation induced dollar collapse) herd behavior; the gold market.
Gold To Rally?
The gold lunatics are out again … having escaped the asylum yet one more time.
Of course, this upward bounce was predicted well in advance:
Of note: GDX is in ‘spring’ position. An upward attempt is to be expected.
If GDX was to break out and start a sustained bull move, this would be the spot. We’re at the danger point.
Gold and GDX, have indeed put in some kind of a rally. However, let’s see what the gold market (GLD), is saying about itself:
Gold (GLD) Analysis:
As of this post, this is how it looks.
Marking up with a tend-line gets us the following:
On a longer term perspective and if the trendline is broken, we can go back to the original idea of an up-thrust set-up:
As is typical for this site, we’ll let the bulls duke it out with the bears. We’ll wait and see if we’re at a reversal point (trend-line) or if we’re headed to up-thrust condition.
If GLD breaks the trend-line, getting back to the 170 – 171, level (up-thrust), imagine the hysteria. 🙂
Lastly, Biotech (LABD):
First: Did we exit LABD?
Answer is No (not advice, not a recommendation)
The price action thrusts below support that have been reported in prior posts were indeed spring set-ups.
However, it’s obvious now, they were not THE set-up.
The chart shows LABD has met an ‘a-b-c’ measured move target.
The idealized form of an ‘a-b-c’ corrective move, is shown with the blue lines and notations:
At this juncture, wave ‘a’ net distance traveled, is equal to ‘c’ and wave ‘b’ net distance, is about 50% the length of wave ‘a’.
These measurements are typical for ‘a-b-c’.
My firm’s main position is still showing a good profit and we’re going to maintain short biotech via LABD (not advice, not a recommendation).
However, as with GDX being at the danger point before its rally, so too is biotech at the danger point (prior to a potential decline).
Expectations are for LABD to retrace higher from current levels.
Charts by StockCharts
Note: Posts on this site are for education purposes only. They provide one firm’s insight on the markets. Not investment advice. See additional disclaimer here.
The Danger Point®, trade mark: No. 6,505,279