Thursday, February 4, 2016

[UGAZ] deep vee 2nd is done.

The dollar has broken down.  Gold is reacting first, silver will react with lag and commodities will then react.  In the backlink on UGAZ I was looking for a stopping point for wave 2, always with the understanding that these 2nd waves can be very deep vees at the end of long sell offs.

The UGAZ chart now has the the look of a deep vee 2nd.  Wave 2 looks to be forming or has already finished forming WC2.

Zooming way in, the 5th of C of 2 might already have bottomed with a mid channel move which did not result in a lower low - a failed 5th.  This count is bust if the chart goes even 1 penny below the blue line but I do not see that happening.  I suspect that the traders will sector rotate out of gold soon to pump this up and then when gold has retraced it will run back over to gold again.  Folks, the near term percentage gains here will likely be staggering.  Even if this is a WCB instead of WC2, we should see a higher high than the last high.  At $3 the gains will already be 100% and they should take place over a short number of trading days because C waves get 'er done.

Everyone is focused on metals and miners right now and I think that is a good thing but I think the near term opportunity here is approaching extremes.

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