Thursday, 19 May 2016

12pm update - the miners remain an indirect signal

The miners (via the precious metals) remain an indirect signal of underlying capital market unrest. The miner ETF of GDX opened sharply lower by around -3% to $22.78.. but has seen a very powerful reversal.. currently +1.9% in the $24s.

GDX, daily



*I realise some would disagree, but the metals and miners appear to be a rather kooky... but important indirect signal of underlying capital market unrest.

Gold to the $1400/1500s appears a pretty realistic target this summer/early autumn, and if that is the case, GDX would probably be in the 35/40 zone... which would be an incredible hyper ramp, having traded at $12.40 in January.

As for the equity market.... it appears the mainstream have recognised we've seen a core break of support.. and now seem resigned to sp'2000 within the near term.

... and of course.. there is the H/S target of 1970/60s.

Meanwhile... a covert signal to the Desert Fox...

time for tea