Friday, November 28, 2014

What Sayeth the Dragon ? Charts accompany

Normally I won't lead off so quickly with conclusions but this warrants a change.
    As you noticed on the chart today of Singapore, we bounce around in the U$D 1180 area, a result of Uneconomic selling known as a smack down.

In light of a strong bounce off the 16 level, all three Major Measures, ACID TEST, GIMBO and HYDRA-DRAGON, all in LONG mode, as well we need to be aware of corrections.  We see in the picture below, that the Dragon (Hydra+Dragon), is in position to correct, with the Fast Line (Cartel~Buster !®), rounding over in a manner that suggests potential correction.   In maintaining a LONG Mode Stance,  the Dotted line could dip down all the way to the Dashed line, and yet stay in LONG Mode, if it does NOT go under and stay under the Dashed line for THREE intervals or more.  So a correction may or may not materialize, but statistically, some dip seems in the cards from my view of 
the BREADTH DATA, which may or may not reflect in the PRICING DATA, i.e.GDX.  Likely we could see some dip in the GDX pricing.
As you see, the Gold Mountain represents the GDX,
 the dots = CARTEL~BUSTER !, and GIMBO is the dashed line.

To take a look at the price data, i.e.  GDX here is my liberal interpretation of what EW channels would suggest, inspired by an EW interpreter I respect:

So it looks like to me, we could be smacked down to the 18 level up to the early part of December.  Thus to keep the LONG Mode if looking at GDX, we'd need to keep above 18, or at least if dipping below it, not more than 3 days back to back.

READ about Dave's Black Swan's -> LINK