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Jeff Pierce
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I’m a swing trader of momentum stocks with a holding period of anywhere from a few hours to a few months. I run a number of screens to locate the strongest/weakest stocks out there, using technical analysis to determine my entries and exits. Trying to calculate the intrinsic value of stocks in... More
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  • Gold Miners Look To Break Below June Low 0 comments
    Nov 26, 2013 2:12 AM | about stocks: GDX

    By Poly

    This is an excerpt from this week's premium update from the The Financial Tap, which is dedicated to helping people learn to grow into successful investors by providing cycle research on multiple markets delivered twice weekly. For more up to date commentary subscribe. Now offering monthly & quarterly subscriptions with 30 day refund available if not 100% satisfied.

    I'm looking for the miners to break below the June Low, but for Gold to hold above it. A decline by miners below the low should trigger exhaustion selling, but if Gold doesn't confirm, it should mark a significant bear trap for investors in miners. If Gold holds above the June low, additional weakness in miners should be short-lived…and a final bottom in miners will become more likely.

    (click to enlarge)

    Investor Cycle Trading Strategy - Gold/Silver

    Last week, I wrote that I did not want to trade Gold Long until it dropped toward the $1,220 area. I wanted to see the current Daily Cycle step-down into a sharper decline before I had the confidence to buy an oversold Cycle. Waiting, I believed, would provide a good trade setup with a much tighter stop, with the June low of $1,179 just below the expected DCL/ICL.

    Last week's strategy is still on play, with Gold having done as we expected. It is now much closer to our target and a week deeper in the timing band. Patience has allowed the setup to come to us. One last drop early next week will create an ideal entry point.

    Expected Trade: Within 1-3 Sessions. I'm preparing to buy a 35% position Long Gold/Silver/miners.

    Related Posts:

    Euro's New High Negates H&S Pattern

    Equities Appear To Have Put In A ST-Bottom

    Blow Off Top Could Be In The Cards

    Stocks: GDX
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