The model from yesterday's metals and miners update expected a direction change in JNUG/JDST this AM and so I bought into the JDST strength at the open. Coincidentally, this article appeared which implies that China will not be aggressive gold buyers into the 2nd half of the year. I guess it is just coincidental that it came out right when the chart suggested that a reversal was near.
That twin peak top happened right where one would expect the throw over to reverse. I suspect that metals and miners will be under pressure well into Q3. The slope of my model above is too steep. It should be something more like the a-b wave. We should expect to see 5 good sized waves down from here that result in a lower low than the B wave. Absolute levels are not as indicative as wave structure.
Friday, June 20, 2014
Subscribe to:
Post Comments (Atom)
No comments:
Post a Comment