No SELL Signal on Stocks Yet

September 12, 2013

We ended the 3rd step of the current rally yesterday and 4th step  will be

 starting today. It will be a moderate decline followed by a 5th step up to a new high in the current rally. Most stocks will not go above the previous highs but some will exceed the previous highs. Those who sold TNA yesterday sold near the highs yesterday.

Here are some charts to look at
DJI

SPY

IWM (ETF for Russell 2000)

TNA

GOLD
Gold had a big decline today and all gold related stocks are down sharply.
This does not  mean that  you should sell your positions today.
We can start looking at GDX  ( ETF for Gold mining stocks)

We can look at the Fibonacci analysis of the previous decline we had from July 23 to till Aug 6 . The decline was a hefty 78% of the rally. All of that decline was retraced within 4 days.
The decline this time on GDX from the high this time is also shown below and will probably be 78 %

See below Fibonacci chart for GDX for the current rally. It is almost there.

Because NUGT is leveraged, it will have a little more decline than 78% from the peak.

Also let us look at NUGT chart for the last 10 days. The 5th leg down is being completed today.  So we  may have a rally starting tomorrow.
See below.:

So we were early in buying NUGT yesterday.