Crude Oil Trader's  Instablog

Crude Oil Trader
Send Message
Crude Oil Calls, Superior Trading Tools Visit us at http://crudeoiltrader.blogspot.com
My company:
Ray @ The Crude Oil Trader
My blog:
Crude Oil Trader
My book:
A Trader's First Book on Commodities: An Introduction to The World's Fastest Growing Market
  • Bear Market Cycle Bottom Forming In Gold And Gold Stocks Right Now!  0 comments
    Dec 27, 2013 9:05 AM | about stocks: GLD, GDX, GLL, GDXJ, FCX, SLV

    Today our trading partner David Banister takes a look at the Bullish Percent Index chart relative to Gold's cycle and Gold Stocks.

    Essentially it tells you what percentage of Gold sector stocks are at or above a moving average, which normally would be 50 days. When 70% or more are above a 50 day moving average, sectors can be peaking out. If you look at our chart at the bottom, we have labeled various incidents with A, B, C, and D.

    A. The precious metal as we all know peaked in the fall of 2011 at $1923 per ounce, and the Bullish percent index was at 80%! Usually at 30% or so, they are bottoming out in most cases.

    B. We saw a rare case in the summer of 2013 where the Bullish percent index for Gold stocks was at 0%, yes that is not a miss-print.

    C. Gold bottomed at 1181 in late June 2013, and then rallied up to 1434 and we saw Gold stocks rally 40-80% in individual cases and the Bullish percent index rallied up to 55%.

    D. If we fast forward to December 2013, we have Gold pulling back in the final 5th wave down from the Bull cycle highs in August 2011 at $1923. The Bullish percent index is back to 10% and heading towards 0 or close once again. At the same time, the Gold miners index ETF (GDX) is at 5 year lows and even lower than June-July 2013 lows.

    These types of indicators are coming to a pivot point where Gold is testing the summer 1181 lows and may go a bit lower to the 1090 ranges. At the same time, we see bottoming 5th wave patterns combining with public sentiment, bullish percent indexes, and 5 year lows in Gold stocks. This is how bottom in Bear cycles form and you are witnessing the makings of a huge bottom between now and early February 2014 if we are right.

    The time to buy Gold and Gold stocks is now during the next 4 - 5 weeks just as we were recommending stocks in late February 2009 with public articles that nobody paid attention to. This is the time to start accumulating quality gold miner and also the precious metals themselves as the bear cycle winds down and the spring comes back to Gold and Silver in 2014.

    Click here to join us at Market Trend Forecast for regular updates on Gold, Silver, and The SP 500 Index. - See more at: crudeoiltrader.blogspot.com/#sthash.ACmtUE5U.dpuf

    Stocks: GLD, GDX, GLL, GDXJ, FCX, SLV
Back To Crude Oil Trader's Instablog HomePage »

Instablogs are blogs which are instantly set up and networked within the Seeking Alpha community. Instablog posts are not selected, edited or screened by Seeking Alpha editors, in contrast to contributors' articles.

Comments (0)
Track new comments
Be the first to comment
Full index of posts »
Latest Followers

StockTalks

  • Crude Oil, Natural Gas, Gold, SP500, U.S. Dollar, Coffee and Sugar Markets Summary for Wednesday evening 06/29 > http://tinyurl.com/nor6ozc
    about 9 hours ago
  • US Dollar & Gold Attractive with Jumpy Markets...Find out what to expect from stocks, oil, gold and gold miners > http://tinyurl.com/h9eof4w
    about 17 hours ago
  • Crude Oil, Natural Gas, Gold, SP500, U.S. Dollar, Coffee and Sugar Markets Summary for Tuesday evening 06/28 > http://tinyurl.com/nor6ozc
    1 day ago
More »
Instablogs are Seeking Alpha's free blogging platform customized for finance, with instant set up and exposure to millions of readers interested in the financial markets. Publish your own instablog in minutes.