Sunday, September 2, 2012

Because you ASKED

     This is a Tide or River Gauge, to be sure.  It shows where the high water mark is and has been.   The real question is:
 WHERE DOES IT GO NOW ?    Truly if you really knew how much I HATE making predictions,  you'd wonder why I bother with this one.  

        WHY do it?

Because it is driving you crazy.......thats why.

    IMO the RED ARROW on the Right side of the chart shows where I think the
% of Bullish Point & Figure Charts for the GDM stocks will go sometime during the month of September.

     IN the simplest way I can say it, I think the % bounces off and back up form its 20 Day Moving Average.  So basically it re-traces 1/3 of the distance of its advance, and then continues its uptrend.    Typically in previous advances, a down turn in the %BPGDM, it marked a the start of a Serious Downtrend, UNTIL the Sea Change manifested in May, starting back in March.
      Interestingly, the most bullish Fibonnaci retrace is 38.2% down off the top.  Mathematically 1/3 of the advance from 0%, to 51% would be 17% which when taken off 51% yields 34%, quite similar to where the 20DMA is located.
     If you like clustering things the is gives you the 20DMA, the 38.2% Fib and the 1/3 Retrace all in the  32-34% ZONE.   Add in the Speed Resistance Lines, brain child of Edson Gould, again it bounces off that 30-35% ZONE during the month of September.

      You can decide if you think Gold Miners will get smashed in the correction.
I think this is the first step in a BULL LEG and so I think the Correction in the
%BPGDM will be accomplished in rotation.  It is also my opinion, that Silver Miners are 2/3 through their correction even at this early date.   Bad mgmt miners will get creamed here, and  others will appear as a FLAT correction.
It wont take any kind of "Scope"or Geiger Counter to tell the good from the bad.