[GDX] update

At the backlink I was looking for one more wave down on GDX per the model below.



As modeled above, GDX has moved lower per below.  The red, blue and green are my primary, secondary and tertiary models below.


Green model above might seem impossible but there is always the threat that we see an even deeper final wash out bottom.  It could count per the larger model below.  If this happens it should go pretty quickly.  It should be major shock and awe for gold bugs with the stupid talking heads proclaiming even louder that gold is a dead barbarous relic, gold will be worthless soon because the fed is now on top of things raising rates, etc., blah blah blah.

For example, I could see something happening like Yellen seeing interest rates climbing without her so the disposable Fed chair decides to follow them up by 25 basis points and then the world stupidly believes that the dollar is somehow worth more sending gold to one final gold bug smashing bottom with GDX as low as $8.

Folks, this would not be bad news.  It would fantastic news because it would really put the EWI long term model on gold (that this is just A of C) into the hurt locker.  These kinds of valuations are what you see at the ends of trends, not at the half way point.

A break above ~14.70 puts the whole lower low thing into question.  I'd be much happier to instead see a big gap down - 3 of 5 of 5 - based on some fed announcement about rates.  That would tell me we are getting very close to the wave 2 bottom.