There are violent moves today in gold; both gold (GLD) and the miners, GDX.
One could think, maybe rightly so, the whole market, the miners, gold and silver, are kicking off a massive bull run.
On the surface, it looks that way.
Looking deeper, maybe not.
It could be a test of the November ’21, reversal.
Looking at charts of both Newmont and Senior Miners, GDX (we’ll cover gold tomorrow), the prior assessment, the market’s thinning-out applies even more.
Everything possible is being thrown into the last man standing: Newmont.
The violence of these moves is obvious.
Newmont (NEM) and GDX: Daily Charts
We’re going to put the unmarked chart of Newmont (NEM) and GDX directly below. The key takeaway is how far above NEM, is from its mid-November highs.
Then, look at GDX and note, it’s close but well below its mid-November highs.
This market (Senior Miners) continues to thin out … and it’s doing it violently.
Senior Miners, GDX:
Looking at the marked-up chart of GDX, it’s possible all of the action over the past two months, was to get into position to test the upthrust:
If an up-thrust “test” is the correct way to view this action, with gold (GLD) in a similar position, and if price action can’t hold these levels, the ensuing downside stands to be even more violent.
Run Fast, Or Not At All
Before the end of this session, DUST-21-01, will be reduced to be in compliance with margin requirements.
At mid-session, that reduction would be in the area of 12% of position size (not advice, not a recommendation).
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.
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