When you use the trend following approach, every now and then, you will get whipsawed. That is the price you pay for never missing a big move on the upside or downside. You have to follow this rule religiously.
Gold and Silver both gave a short term BUY signal yesterday using our trend following approach as given in our book. Let us look at the charts :
GLD
Using Elliott Wave Theory, we have started the C leg up with a possible goal of $1375 to $1400. Of course, we are not making any predictions. Let the market tell us where it wants to go.
Notice the heavy buying near the bottom, where we also told you to buy on the day of the low around $1180.
Another chart that is even more important at this time is to look at Gold Miners ETF GDX.
This is the ETF for all the big companies who are into Gold & Silver mining. At this time these mining companies are selling at book values. There has been very heavy buying in this ETF.This ETF is also giving a BUY signal.
GDX chart
It is possible that when this rally is over, GDX may go down if the price of GOLD goes down. However, Gold may go down to $1100 , yet GDX may not go to new lows as the price of $1100 may already be built in at the lows.
One other interesting thing is that there is a 3 X leveraged ETF called NUGT for gold miners also. That one is giving a buy signal on heavy volume. Here you have to take profts even before it gives a SELL signal.
NUGT
Always remember insiders buy at the bottom & SELL at the top.
There is also 3X leveraged Bear ETF called DUST . See the chart below. There is a clear cut SELL signal on it. First we got a Sell Signal in early July. We got a SELL signal again on Thursday, July 8 getting us out of any long positions. Moreover this selling is happening with huge volume. The market will tell us whether we are right or not next week. We will soon cross the 50 day moving average .
Let us now look at SLV the silver ETF. It is also giving BUY signal.
Gold and Silver both gave a short term BUY signal yesterday using our trend following approach as given in our book. Let us look at the charts :
GLD
Notice the heavy buying near the bottom, where we also told you to buy on the day of the low around $1180.
Another chart that is even more important at this time is to look at Gold Miners ETF GDX.
This is the ETF for all the big companies who are into Gold & Silver mining. At this time these mining companies are selling at book values. There has been very heavy buying in this ETF.This ETF is also giving a BUY signal.
GDX chart
One other interesting thing is that there is a 3 X leveraged ETF called NUGT for gold miners also. That one is giving a buy signal on heavy volume. Here you have to take profts even before it gives a SELL signal.
NUGT
Always remember insiders buy at the bottom & SELL at the top.
There is also 3X leveraged Bear ETF called DUST . See the chart below. There is a clear cut SELL signal on it. First we got a Sell Signal in early July. We got a SELL signal again on Thursday, July 8 getting us out of any long positions. Moreover this selling is happening with huge volume. The market will tell us whether we are right or not next week. We will soon cross the 50 day moving average .
Let us now look at SLV the silver ETF. It is also giving BUY signal.
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