GLD has broken back up into the channel of the falling wedge. Av i is still counting this as 3 of 3 but I wonder if he's missing the potential for this to be a falling wedge per below meaning that internal waves are 3s not 5s as he seems to be expecting.
Regardless, when I see a throw under and then a break back up into the channel I have to count it a buy as long as that lower rail holds.
Good morning Captain,
ReplyDeleteWhat s your take on GDX that just broke it s yesterdays low and according to rules was a sell, yet JNUG is still holding the 9.93$ ?
thx
L.
L,
ReplyDeleteBe careful about one thing. "according to rules was a sell" is only correct if your count is correct.
There is no certain relationship between the juniors and the majors. Yes, they are both tied to the hip at the end of the day by the cost of mining and the price they can sell for but these numbers can be wildly different between these sectors based on things like:
- bigger companies have economy of scale
- bigger companies probably have corrupt politicians in their pockets. This can make it faster and cheaper to get environmental permission, etc.
- bigger companies will have easier access to credit (in general).
- etc.
I would wait for longer periods of divergence before I would infer anything from them. Of course, all of this is really much less important than the individual wave count for each sector, etf and company. I only let a small part of my chart interpretation be affected by factors other than how I interpret the waves.