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DUST Could Be Ready To EXPLODE HIGHER!!!!

(click to enlarge)Click to enlarge

If you look at the above chart, you will see that we made a major top high back on April 17th of this year, followed by a minor top and turn down on May 20th. The critical portion of the above chart is to look at what happens after the minor top when we fall 13 days, go sideways 7 days and then boom to another major top on June 26th. From that major top we corrected down and finally rallied back on August 7th to establish another minor top. We then fell exactly 13 days just like before, and bottomed right on schedule just above $20. Then we rallied out of the hole and have gone sideways just under $30 for exactly 7 days through today. If we follow the same pattern we did previously, then we should boom above $30 for the next seven trading days and possibly hit $50 or higher!

Will History Repeat Itself?

I have been aware of the current trading action repeating the previous trading pattern for awhile, but kept silent. I figured it was just a coincidence, and there was really not a cycle or rhythm to the trading pattern. Off a minor high we had exactly 13 down days each time before bottoming. So what?! But then I noticed that the fourth rally day out of the bottom each time made a similar Doji Star pattern that took the shape of a "T". I then started getting more bullish on DUST and decided to day trade from the long side. However, I continued to trade very small and hardly kept anything long over night. But now we are pushing above $29 right on schedule, thanks to December gold selling off today down to the mid 1360s, and Newmont Mining being downgraded. I wanted to post this article last night but I was not really all that bearish on gold and figured DUST would fail to bust out to the upside on schedule. I figured today I would be proven wrong. However, after today's weak trading action in both gold and GDX, and the nice rally to short term resistance that occurred today in DUST, I decided to post the article to show others the trading cycle I have identified in DUST. If DUST does bust out to the upside tomorrow, I will feel compelled to buy DUST shares as the up move could indeed be quite significant, based on past action. It will be curious to watch and see if indeed we are about to have an explosion higher in this triple leveraged short selling gold miner ETF.

Disclosure: I am long DUST.

Stocks: DUST, NUGT, GDX, GLD