GLD has been in a sell state since early October 2008 and has basically gone nowhere since then. Today a buy alert was issued, and is temporarily confirmed. However we will be patient and wait until a weekly confirmation signal is confirmed. With GLD and SLV we want to make sure this confirmation is for real, which is why so many previous buy alerts have failed. Interestingly Martin Arm Strong called for a bottom in Gold on 4/19.
The current pattern that is evolving is the white spinning top - which is of low reliability and shows a complete indecision between bulls and bears. Because of it's low reliability we want to watch what happens before making any moves. A simular pattern is evolving for SLV, and the buy signal has been rejected.
Based on other technical studies, there are two scenarios that can evolve - one we have reached the low and will be climbing higher, or two - we have one more big leg down in the metals markets, or multiple stairs down to the low. The positives as posted by sunshineprofits is that the volume in the ETF's is declining with this correction.
ADRE and PHO are currently in a confirmed SELL state. The confirmation may get rejected over the next few days if there is a strong recovery, but after 6 weeks of rallying the market is due for a pause so we will treat the signals as real.
This was the bearish deliberation pattern that kicked off a warning last week for PHO. Because of the markets current situation it was prudent to place protective stops in case this reversal held true. (It did today).
We've hit a short term line of resistance but notice the thickening cloud ahead. Should we get a re-entry signal we must be wary of the formidable resistance. We still have a ways to go to repair the technical damage done last fall and resume a truely bullish stance, but we can take advantage of the wide price swings in the meantime. We signaled a SELL way back in early september well before the collapse.
