Have been travelling, kicking some rocks, and will be for the next week. Staying at arms length from the PM sector for next 3 to 4 weeks, whilst SITTING, to give it TIME to move up out of these cycle lows. The short covering yesterday saw the outside reversals. This is how these cycle lows form…the consensus panics into the lows, and then shorts cover to get the next up leg started, then the bulls takeover. Rinse and repeat, as the bull does his work, ensuring most are not riding on his back.
Here are a few charts which show a consistent theme across the sector. Of interest, the $CDNX rock pit cup and handle is playing out nicely, with the cup neckline now the next target over the next few weeks. XGD global gold miners right shoulder is also forming nicely, with the neckline now the target over the next few weeks.
Have also included ABX and PAAS charts as proxies, as they are the sector leading edge. Also, XME which shows the metals and miner sector generally is now ready for another leg up in this bull market.
What stands out generally are the negative divergences into the cycle lows. This means that this new cycle high should exceed the February highs. That is, the necklines get taken out in this cycle, then a back-test which is normal. My targets on PAAS and ABX are both around $23 for this cycle, based on the negative divergence calculations, or about 30% higher than current prices. No cigar yet, so lets see whether the bull has the energy to do that in this cycle.
If these charts do not convince you that this is a bull market, nothing will. Unless one has the resolve and conviction, based on what the charts are saying, one will not be able to sit this bull market out. And like most, will not make a dime out of it.
Notice I am talking WEEKS, not days, not hours, not minutes. Weeks. No instant gratification in the markets. They move in their own good TIME, their own cycles, like the rising and falling tides. There will be more corrections to look forward to, in order to flush out more weak hands, and to get the consensus on the wrong side, as usual.
Sitting. Spock 😉