Miner Reversal … 7-Weeks Later

Strategy Update … GDXJ

Wyckoff and Fibonacci analysis allowed the reversal of gold miners GDXJ, to be identified to the week and then, to the day.

A quick review of this post, is the reversal on a weekly basis and this one is a follow-up, showing Fibonacci correlation on a daily basis.

If we want to go way-back, this report, shows the miners were not in a bull market and have not been for some time; for years, actually.

That does not mean there were no trades for upside or downside; there were.

However, from a strategy standpoint, gold miners are not bullish.

So, let’s look at the Junior Miners GDXJ, as it’s the weakest in the sector.

Junior Miners GDXJ, Weekly Chart

Un-marked

First Mark-up

The reversal is at Fibonacci 89-weeks, plus one day.

However, it’s the next chart that’s more disconcerting for the bulls.

Price action reversed right at a Fibonacci 23.6%, retrace; indicating severe weakness (if it holds).

The two black lines above the 23.6%, are 38.2%, and 50%, respectively.

The next chart zooms into the reversal area.

This week has already posted a new weekly low, providing additional confirmation of the reversal.

As gold, silver and the associated miners reverse lower, we have news reports of precious metals purchases going off the charts.

Where was everybody in 2001, as gold was bottoming?

That’s, 2001 – to – 2022, a Fibonacci, 21-years.

Which brings us to the next point.

The YouTube “Herd”, is Forming

Several YouTube sites that have been monitored for years, have recently blown-up, passing 100,000 subscribers; more than a few are past 200,000 or higher.

Recently, they have started giving each other ‘shout-outs’, to indicate their approval of that particular site’s ‘content’.

Viewer, Beware

By definition, the ‘herd’, does not have the right answer.

Each one is now monitoring what the other one is doing; they are all, influencing themselves.

The only way to have a hope of getting unique insight is to remain aloof. Wyckoff described this exact phenomenon in his autobiography.

He had very wealthy clients that wanted to get closer (unlimited) access to him. To this overture, he refused.

He isolated himself and remained cloistered.

Summary

Thus far, the analysis of gold ‘changing hands‘ remains intact. Gold continues to be well off its highs; silver is not anywhere close.

Strategy, Tactics, and Focus.

The Junior Miner’s reversal can’t be disputed … there it is.

If precious metals and the miners are not responding to all the ‘money printing;’, then something else’s afoot that’s not being revealed to us in the proletariat.

That ‘something’, is probably starvation … which gets us back to Genesis 41; corn and grain come first, then gold and silver (not advice, not a recommendation).

Stay Tuned

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

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