Since then, GDXJ has given up 50% of the gains it made since mid December. This is normal, usual, and expected. But while that massive give-back was occurring, TRX barely gave up anything. I've seen this movie before. The red model is just a bit too steep but not very much. I pretty much expect a mirror of the left side to appear on the right. This has "quick double" written all over it IMO.
The logic is this: TRX got completely whacked during the sell off. Longs bailed and shorts jumped on it hoping it would BK before they had to cover. But in the 3rd wave up of the juniors we are likely going to see animal spirits come out of hiding and demonically possess the juniors. That's just what 3rds do. When that happens, TRX is going to get rediscovered as a cheap junior. It might eventually BK for all I know, but not within the next 2 weeks and that is when I expect the shares to skyrocket as shown. This is of course assuming I got the wave count right for GDXJ. But I did get the count pretty close for TRX because I'm in at $.64 which is actually pretty near the bottom (so far). When GDXJ breaks out into wave 3 I will probably double down on this. I don't have many shares of it right now and I am convinced that it is going to catch a bid in the next 1-2 weeks for the reasons stated.
No comments:
Post a Comment