Sunday, September 2, 2012
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.