Thread: Bear Cave 2 (Bull Allowed)

Hmmmm...... Not happy at all with my EQX position...... Still holding and added another small tranche..... Tagging the lower BB..... We shall see if the $6.00 low marker holds. I'm still a tad concerned that the insiders have been selling their shares. That is why I usually only trade GDXJ, but have been trying to ST trade this one lately....

We shall see how it plays out!

EQX daily: Remains ugly and close to the lows of the day..... I still haven't said Uncle...... Waiting to see if the $6.00 low holds as the insiders have been dumping their shares too. NOT GOOD! I like to trade the lower BB crash trades. But with the Fed talking about higher rates, it has many in this sector selling the gold miner shares. Gold moving lower too.

SPY daily: Back above the 200 dma which is a good sign. We shall see how we close.

SPY weekly: Back above the 50 week sma and "MAYBE" an ICL be happening soon. STBD!

GLD/Gold and the Gold Miner's current Divergence: Why are we seeing this divergence? Note how they all peaked in November and bottom in December together...... Hmmmmm...... Depending on who you ask they will give you different answers. Maybe the miners are leading and gold will follow or the other way, or, or, or.... LOL.... We shall see!

Bottom Line for me: LOL..... My EQX trade really sucks right now..... GDXJ remains a winner overall based on my average share price.....

EQX hitting a new low for today......

GLD = Candlesticks
GDXJ = Purple solid line
EQX = Orange solid line

Oh boy: Long EQX and GDXJ

IAU and EQX daily: EQX pushing on and moving below the lower BB.

EQX daily: As we head into the last hour of trading stocks did NOT like the Fed Speak.... Rate increases coming..... LOL.... Gold and the miners really didn't like it.

We shall see how the last hour of trading goes and what investors think about 2022. These moves right after Fed Speak can change in the days ahead, but one never knows for sure. Some will just sell the news. TSPer's still have until next week before they can get back into index funds if they sold.....

SPY daily: Watching the 200 dma to see if buyers can move it back above before the close. Most indexes moving lower as the market reacts to the coming rate increases.....

I will be adding to my GDXJ position..... I still have less then a 10% position total in this sector. NOT going well for my EQX position...... Trading the miners is not for MOST and this is why you have to keep positions small and stay away from leverage.

Well decided to hold off on the EQX last night. So maybe got a little lucky there. I am really liking this GDXJ price. Think I will jump in there at $38.87.

Originally Posted by Babkock

Well decided to hold off on the EQX last night. So maybe got a little lucky there. I am really liking this GDXJ price. Think I will jump in there at $38.87.

I think GDXJ will go much higher in the months ahead, but for now a move back up to the upper BB is what I will be watching. Not sure the move down is over as the sell the news after Fed Speak pushed the gold miners down hard. I will probably buy some more EQX tomorrow, but not sure just yet. I only added shares today and sold nothing. That doesn't mean the miners are not moving lower. This is a tough sector to trade Brother and that is why I scale in using small tranches.....

The beat-down of the miners caused an under cut of EQX's $6.00 low marker. I would say some traders probably had stops around that area. That means once we bounce they will have to buy back shares at higher prices. The low of the day was $5.92 so the $5.90 market held.

Bottom Line: The move down for the miners continues...... I'm holding for now, and still adding some tranches as GDXJ continues lower.

EQX daily: An updated chart as the one above was a tad long. See comments above.

GLD/Miner daily Divergence: As I pointed out earlier today. This divergence should correct in the days ahead. Either GLD is moving lower ( very possible) or the miners should bounce....

LOL...... I lost some new truck money today.....


Getting There:

https://money.cnn.com/data/fear-and-greed/

The Market’s Sold the Rumor… Is It Time to Buy the News?
Imre Gams | Jan 26, 2022 | Market Minute | 3 min read
Last Wednesday, I pointed out a bearish price pattern in the S&P 500.

I warned that if the index were to break below the support line of that price pattern, we’d likely be looking at a selloff back to around 4306, the lows from October 2021.
nvestors are worried about inflation, and since the start of the year, have been pricing in what they think will be a more hawkish turn by the Fed…

This is what I mean by selling the rumor.

Now for the second half of the equation: buying the news… When the Fed delivers their updated guidance, the market could realize that they overreacted and that stocks should indeed be priced higher.

Of course, we’ll just have to wait and see how the market will react later today.

But don’t be surprised if we get a fierce rally… even if on the surface it would make more sense for the market to sell off based on the actual news.

Happy trading,

Imre Gams
Analyst, Market Minute
https://www.jeffclarktrader.com/mark...-buy-the-news/

The General deserting? Goldman getting less bullish
Goldman Sachs: "Our bear market risk indicator has increased and points to low future returns. While it has not reached danger zone levels that typically precede a bear market (a fall of at least 20%), it has reached levels which have typically been consistent with corrections and relatively low returns over the next one and five years".
https://themarketear.com/