Fundamental drivers for the markets over the next couple months
Doc and I follow up on the conversation I had earlier with Rick. We discuss using Amazon as a barometer for the broad averages and the fundamental drivers for the markets over the next couple months. A new all time high is possible but Doc does not see it getting out of hand.
Click download link to listen on this device: Download Show
Rickards is making his rounds again to promote his book and himself ad nauseam.
Paul Craig Roberts……….at ……..usawatchdog.
highlights the fed……and CIA…….
Doc, I saw KLDX @3.8 today so I bought some for the first time. How low do you think it will go? Thanks.
BB; I think the stock is just about ready for a short term bounce—in fact, I almost bought some today—I may before the close of the market—what concerns me though is the monthly chart which appears to give the possibility of the stock going lower after regrouping here.
BB; not investment advice but I’m waiting for NAT to move back this month toward its’ lower BB and then I might purchase some before their end of April dividend announcement—then if the stock starts to move down toward 6 I’ll exit my position right away.
I believe KLDX could approach 3.
Okay; BB, now you did it—I just purchased some KLDX.
Doc, great minds think alike. Except I never want to sell my gold stocks before gold reaches 5K. KLDX may go to 3, when I’ll buy more, but one day it may go to 40, so I sleep better owning it than not.
Now you guys have me looking at Klondex. I’ve owned it off & on over the last 2 years, but haven’t held it in a while. I still see KLDX as a takeover target down the road, but it sure has pulled back pretty hard. Interesting….
Uh-oh…. Stand back, we got a crazed doctor on the loose, nibbling at PM stocks. 😉
(I have been on a few last week and this week as well, but no just Gold & Silver, but PGMs, ZInc, Copper and Uranium as well….)
I continue to nibble at uranium stocks; in fact, added to a position today. I’m mostly purchasing PM stocks that have been hammered and are bottoming but not in big amounts since I think TA will give me a better chance as the spring and summer move forward.
Doc – can I get your thoughts on a chart for Canada Zinc Metals?
I worked up a quick daily (but haven’t checked the Weekly yet), and this is what I got so far:
> There is a #Hammer Japanese Candlestick on the daily which often signals a turn in direction.
> It also #gapped down into that hammer candle. (most gaps get filled eventually but maybe not imminently)
> Next up the #RSI is slightly oversold at 28.57
> I am a bit concerned that pricing broke down through the 200 day #Exponential Moving Average.
> The #Slow Stochastics are oversold down to (4.76) so I could see a bounce soon. I have seen the Slow Stochastics get down near 1-0 in some cases though.
> The #ADX indicator looks bad, but the red line looks parabolic to the bearish tilt, but getting overdone, as the black line, which is the strength and momentum of the move, is not turning up much. In general the black line has been trending down on the ADX. Would you say the move down lacks any more conviction here?
> If you look back at the prior peak from July of last year it is at $.295 and there was a prior trough in August of $.305 and in October of $.315. I see that $.295-$.315 being a “Congestion zone” where some support should come in.
> Now if that support zone ($.315-$.295) breaks, it may take a free fall down to $.21 but I’m giving the $.30 level a chance to act as support first.
http://stockcharts.com/h-sc/ui?s=CZX.V&p=D&yr=1&mn=0&dy=0&id=p50163160743
On the (CZX) Weekly pricing is right at the 200 Week EMA.
http://stockcharts.com/h-sc/ui?s=CZX.V&p=W&yr=1&mn=0&dy=0&id=p90545067225
Any thoughts would be appreciated, as I am building a position in this Zinc miner, but don’t want to get snared up in a waterfall decline either.
Thanks.
Matthew or GH or anyone else that wants to have a crack at the Technical Analysis on this stock it sure would be appreciated, as I’m unclear after spending some time with it.
My concern is this chart could turn into an “Island Reversal”, but just wanted to put some feelers out to see what other think, or if we may bounce here off the 200 week EMA?
https://d.stockcharts.com/img/articles/2010/09/6a0105370026df970c0133f396999a970b-800wi
Ex, it is oversold and looks like a low is coming soon. 29 cents looks likely to me while 22 cents seems like a worst case should it break down.
Daily:
http://stockcharts.com/h-sc/ui?s=CZX.V&p=D&yr=1&mn=0&dy=13&id=p51283452430&a=516590652
Thanks Matthew.
29 cents and 22 cents seems congruent with that $.295 prior peak support, and the $.21 downside I was looking at, but it’s good to see how others approach the charts.
Much appreciated.
I like that 600 Day EMA coming in near that level as well on the daily.
EX; I would be very careful with this thing since it took out the 200 day SMA—however, it looks like you could get a near term bounce. The key in my opinion is the 200 week SMA. I bet it challenges the 200 week SMA and if the MACD on the weekly starts to turn sideways, it’s probably a safe bet—I would say sayonara if it would close a couple of weeks below the 200 week SMA. The monthly chart raises all kinds of flags. I don’t think this thing will get away from you anytime soon so you could wait until it bottoms and does some pricing at the bottom for awhile. That’s what I often do. Then I put on stops below if it breaks down again—that way I don’t lose too much coin.
Good thoughts Doc. Yes, I was concerned about the same thing on the Weekly, but used the 200 Week EMA instead of SMA. I was thinking of buying more at that level looking for the bounce and turn up in the MACD, then if that breaks just adding more down near $.22-.21. (of course I’d like to avoid that kind of pullback if it looks likely, but will just add a tranche around $.295 and watch it for a week or two to see how it reacts.
Much appreciated sir.
I could put a limit order down around $.275 as a fail-safe to limit the loss I guess.
Thanks again Matthew & Doc.
On further reflection, I may hold off on this one until we are closer to their drill campaign in June. Like JohnK mentioned below, there aren’t many catalysts until then other than a rerating relative to their peers or more of a Zinc frenzy. It’s more likely interest will drift lower over the next few months though.
The big thing to watch will be if the 200 day EMA or SMA hold or if it slices though that level. Watching and holding for now.
Hi Ex,
I can’t really add any insight to those offered by Matthew and Doc. But here’s a couple more views that corroborate the idea of looking for a bounce in the high-twenty-cents area.
http://stockcharts.com/h-sc/ui?s=CZX.V&p=D&yr=2&mn=0&dy=0&id=p86483773049&a=516664092
Oops, forgot to post the weekly. The lower edge of the Ichimoku cloud might offer support.
http://stockcharts.com/h-sc/ui?s=CZX.V&p=W&yr=10&mn=0&dy=0&id=p99508837281
I almost mistook this stock for CZICF/CZN.TO, one that Mr. Moriarty commented on recently…
GH – Thanks for the charts and technical insights. Yes, I’m going to be patient with this one.
P.S. – lots of people confuse Canada Zinc Metals with Canadian Zinc as their tickers are also similar. I like (CZX) for the potential takeout by (TECK) Teck resources and Korea Zinc, and they have a huge resource already defined and their permits are in place.
_____________________________________________
They also have done Metallurgical Studies that show they’ll have a clean concentrate and won’t have the smelter penalties some of the other Zinc stories floating about (like Arizona Mining) will have. Lastly, in addition to having their permits in place, they won’t have the water issues that some companies (like Darnley Bay) will have. That gives them a large leg up over most other Zinc exploration stories at present.
EX CIA Robert David Steele In Oslo – McCain, Graham, Rubio and Schumer Are All Being Blackmailed
Published on Apr 3, 2017
I was invited by Mr Steele to rebroadcast this message on our channel to get the word our. There’s a lot to be said for Robert Steele’s ideas on Open Source EVERYTHING and Electoral Reform. Mr Steele also claims that Chuck Schumer, Lyndsay Graham, Marco Rubio and John McCain are being blackmailed into going along with deep state policies.
“all being blackmail.”….would not surprise me at all……
Lots to blackmail McCain. It’s already in the public domain, but most pay it no heed. If the fake news mass media were to amplify it, his name would be mud instantly.
John Roberts must’ve been blackmailed before he wrote his ludicrous Obamacare ruling.
Obamagate = the new Watergate? Confidence in Gov’t & Press to Decline further
Things are going to get interesting. Of course mainstream media will say this brewing scandal is fake news. Nevertheless, my sources have been talking about this for months now. The Daily Caller now is reporting that former U.S. Attorney Joseph diGenova is talking saying that Susan Rice ordered the spy agencies to produce “detailed spreadsheets” of all legal phone calls involving Donald Trump and his aides when he was running for president. This is likely to be a new Watergate and it seems to fit with our computer forecasts and (1) 2015.75 was the peak in government and from that point onward, it would be all downhill. Yet (2), that the Democratic Party appears to have reached the tipping point. They lost more than 1,000 seats nationwide. They knew they were in serious trouble and thus unleashed the NSA head to go after Trump pretending this had to do with Russians. This is why it may have been the reason Clapper resigned rather than work for Trump.
Joseph diGenova told the Daily Caller: “What was produced by the intelligence community at the request of Ms. Rice were detailed spreadsheets of intercepted phone calls with unmasked Trump associates in perfectly legal conversations with individuals.”
This is going to get real nasty going forward. You can easily see that the combined Senate-House seats as a percentage reflect that the Democrats are in a serious downward spiral. Since the Great Depression, the Democrats have been making lower highs and lower lows. That is the definition of a bear market. This is why we are looking at Obamagate unfolding – desperate times call for desperate measures.
Since the Republicans have effectively been taken-over by an outsider, even their politics has not been as usual. Things are going to change in a very big way moving forward and this scandal is just feeding into the trend. What this will expose is how corrupt the press is as they desperately try to hide the truth and defend the Democrats at all costs.
MSN…..is Fake News…….
I am surprised Comey is not on the hot seat………
Confidence in the press is history……….Bezo report
Fake New…….supported by comments from Paul Craig Roberts, since he worked at WSJ, he should know , and offers some inside info on the CIA, since 1959, via some books by others , which outline the corrupt news media anchor journalist of the past……might be a good read…..if interested ……listen at ……..usawatchdog.
Endeavor Silver – 10+% gainer today, hoorah!
+10
Endeavour Silver Raised to Market Perform by BMO Capital
7 hours 45 minutes ago – DJNF
Endeavour Silver green-lights construction at El Compas
SALMA TARIKH MARCH 29, 2017- Northern Miner
http://www.northernminer.com/news/endeavour-silver-approves-construction-el-compas/1003784978/
Yippee for EXK!
I’ll second that Yippee. 🙂
Would like to see GCC (commodities) put in a big day tomorrow.
AG and EXK, which have been painful to hold lately finally got a pop. Both are massively outside their bollinger bands on the daily chart, so I expect sideways consolidation at best for a few days. I imagine the 50 dma could act as resistance for both. Don’t get me wrong, I wouldn’t mind the entire complex gapping up huge tomorrow morning, but I am not counting on it.
Are the miner’s starting their second leg higher finally? I doubt it, but I won’t complain if they begin their move this month instead of late summer/early fall.
I won’t complain if the miners start a small run here either, but it may just be a short-lived pop in the metals & miners. I’m glad to see Silver outperforming Gold lately and the miners finally kicked it in gear today. That’s a bit more like it…..
Personally I’m still anticipating the seasonality of the larger leg up to start in August (typically one of the most bullish months in the PM miners). However, I’m not opposed to making some gains in April and early May and trimming back going into the Summer doldrums…..
I’m thinking the same as you Ex. A decent little run here, another pullback, and something more impressive starts mid-summer.
GH – That works for me. Hey, I need you charting wisdom up above and threw some questions out to the KER crew on that $CZX Canada Zinc Metals chart. I sure would appreciate any insights you have on it. (towards the top of the blog under Doc’s comments).
disregard prior request- I’m going to shelf this one for a few months and re-evaluate in May.
Cheers!
Wayne – If you see this message – I wrote back to you on Doc’s blog yesterday, and “get it” now and saw the jest. Sorry for the rant, but we are in agreement. Cheers!
FED NEWs……….Lacker resigns, for leaking info…….Lacker the Leaker..
Chris can get a kick out of this one………
Jamie Dimon warns there is something wrong with the US…..zerohedge
jamie needs some love from the MSN……maybe he would like to donate some stolen cash back to the US, and give his buddy Lacky a smack before they go to jail……
Anyone like Timmins ?
Their main San Fran mine in Mexico is running out of low grade gold but there seem to be high hopes for the new Ana Paula mine. Looks pretty big and its next door to Goldcorp
Share price seems bogged down. Optionality play?
Tad – I haven’t looked at it in a while, but have seen it referenced on some emails as undervalued, and have noticed when it shows up on occasion in a peer comparison on a Corporate Presentation it also looks undervalued. (I can’t remember which ones I saw it on but it was 2 different slide decks where there were peer comparisons).
It may be time to have a look-see….
Thanks Ex.
Silver was stopped by speed line resistance today:
http://stockcharts.com/h-sc/ui?s=%24SILVER&p=D&yr=0&mn=11&dy=0&id=p39596380759&a=500462915
This weekly chart breakout is a big deal if it holds:
http://stockcharts.com/h-sc/ui?s=%24SILVER&p=W&yr=6&mn=5&dy=0&id=p92011594522&a=514271873
NIce little game of peek-a-boo….
That reminds me of that Silver Chart that was in that Stewart Thompson article that got posted here earlier today.
Here was the Embedded #Silver #Chart from Thompson:
http://www.graceland-updates.com/images/stories/17apr/2017apr4silver1.png
Indeed. It’s the same but different. 😉
The CMF (Chaikin Money Flow) (20) indicator is way positive this week:
http://stockcharts.com/h-sc/ui?s=%24SILVER&p=W&yr=2&mn=0&dy=13&id=p21098949098
The miners are ready to get moving:
http://stockcharts.com/h-sc/ui?s=GDXJ&p=D&yr=0&mn=6&dy=13&id=p10594095168&a=514473783
The potential for a massive breakout is there:
http://stockcharts.com/h-sc/ui?s=GDXJ&p=W&yr=6&mn=11&dy=0&id=p86417235464&a=509657341
GDXJ speed line break out:
http://stockcharts.com/h-sc/ui?s=GDXJ&p=D&yr=0&mn=7&dy=0&id=p33079880921&a=504703611
I’m liking the miners too.
http://stockcharts.com/h-sc/ui?s=GDX&p=D&yr=1&mn=6&dy=0&id=p67072358155&a=480387695
GDX broke three significant resistance levels so far this week. The 50 day simple moving average, a major fibonacci fan line, and the black two-dotted line which is the downtrend line from the 2011 high.
This one’s purdy too:
http://stockcharts.com/h-sc/ui?s=GDXJ&p=D&yr=2&mn=0&dy=0&id=p41610352501&a=516225049
Yeup….that GDXJ chart is real purdy…..
Much appreciated GH.
Hi Shad:
re: CZX, remember this is coming from someone that still can’t definitively tell you what IRR is all about.
It looks like to me that your CZX investment has turned into a trade.
According to trading economics the price of Zinc has had a weekly gain,although the annual percentage gain declined
CZX has announced they will start drilling in June.My question is “What is going to be the catalyst for the next move?Assays are a good time away.I don’t follow czx,nor am I up to speed on the zinc sector.
To me it looks like the time to sell has passed you by.Notice the divergence betwween the price and the MACD going into the 2016 bottom.Now look at the MACD cross near the high in October.
Here is a good quote from “The disciplined trader,Developing Winning Attitudes”Mark Douglas.”In the market environment you have to make the rules of the game and then have the discipline to abide by those rules.
You can’t change what the market is doing,you can only change yourself.
You already know what to do.
And many thanks for all your comebacks.
JohnK – Thanks for the technical feedback.
Well I just start nibbling at this one recently so I wasn’ t planning on selling right away, but would do so as a defensive strategy for the preservation of capital. I’ve been interested in adding 1-2 more tranches, but didn’t want to do so if it was getting ready to fall out of bed.
A few of the catalysts I see playing into the stock are more visibility (now that Teck and Korea Zinc just made a smelter deal) which highlights the fact that these 2 companies are working in tandem. If you look at their Cirque deposit you’ll notice that Canada Zinc has properties adjacent to them have a tiered option agreement to acquire 70% interest in some of the projects that $CZX holds (Cirque East, Pie, and Yuen North) near Canada Zinc Metals Akie project. Also, $Teck and #KoreaZinc did a private placement in $CZX (noticing a trend here).
I see Canada Zinc Metals as their next acquisition target:
http://cdn.ceo.ca/1ce5hg8-CZX%20-%20Teck%20-%20KoreaZinc%20partnership.pdf
Speaking of being on trend….. Here is a Map showing the properties that (CZX) and (Teck and Korea Zinc) have adjacent to each other, and explains their interest in their partnering together:
http://cdn.ceo.ca/1ce1i9i-Kechika%20Regional%20Project%20Map.pdf
Another catalyst is that the company has decided to get and start telling their story more, and they are trading low relative to the peers, so I see the potential of an upside re-rating in the share price in anticipation of the June drill program.
** maybe you are right though that I should wait until later in the summer when drilling is a little closer, as there may be a slow period for the next few months. They also expect a new resource out by Q1 2018. That is still a ways off though.
This does a good job of doing the overview:
______________________________________________________________________
(CZX) (CZXMF) Canada Zinc Metals – Corporate Presentation
SwissMiningInstitute (22/03/17) : Peeyush Varshney – Canada Zinc Metals CORP.
Lastly, they are already permitted (which makes them and easy acquisition target).
They are also considering creating a “spin co” and spinning out some of their other exploration properties (so that may be a mini-catalyst).
Thanks again JohnK. Yes, it would probably be more prudent to hold off and see if the 200 day moving average holds, because if that breaks, it may escalate to the downside. I’m not in a rush or anything, but I do want to get a larger position going before any companies may get inspired to swoop in and take them out. It is more likely that any suitor (like Teck) will wait to see what the Q2 and Q3 drill programs turn up first, and how the PEA comes out in early 2018.
OK……I’ll be patient 🙂
If investors “Sell in May and go Away….” then I may take a gander at that point.
This was helpful. Thanks again!!
Wow Shad, CZX has it going on. I really like your “advance” thinking here.
I would be looking for a divergence between the MACD Histogram and the price.This would be a pretty good spot to start seeing the stock bottoming.After that I would expect to see some kind of basing before the stock starts its next run. I have gone cash heavy and have been really tortured for doing so.But a profit is a profit.
I watch fast money on CNBC,when one of the traders says he doesn’t understand what is going on,it gives me pause.I just want to make sure that I have some cash on hand when we get our next pullback/correction.
There are two kinds of fear in the market.Fear of loss and fear of missing out.I’m somewhere in the middle.
Thanks JohnK. That is sound advice of going to cash if you are unsure which way things are going to break. There will alway be more trades tomorrow, and it when investors feel they “have to be in the markets,” that this when they often make bad calls and buy tops. I was considering going to more cash in late April early May, would like to see some follow though in miners for a few weeks so it would give a good exit point. Like you said though….”Fear of loss and fear of missing out.I’m somewhere in the middle.” Me too.
As for CZK I may be a little to far in the future, with the advance thinking, and this discussion with you and Matthew & Doc has helped me remember to slow down before I speed up. Patience and stalking, and watching the charts for the right set up with the indicators. I’m still going to eyeball $.29-$.30 to see if that holds, but wait on pulling the trigger until I see more confirmation.
This really was a helpful discussion, and I hope other investors may ask themselves before placing a trade: “Is there some imminent fundamental or technical driver that warrants buying it right now”? If there is a value driver, then it makes sense to take action, but if things are in limbo, sometimes it is better to watch and stalk the company and share price. If it does start to move, you can always buy into the trend, but buying into some mild weakness isn’t the same as buying good value. This was a great reminder.
to = too
This was a pretty good interview with David Erfle. I don’t entirely agree with his assessment of TA not applying to mining stocks, but did appreciate his perspective on the fundamentals and how he evaluates companies in the Precious Metals and Uranium space.
____________________________________________________________________
David Erfle | Early-Stage Exploration CEO’s Shouldn’t Wear $10k Suits
MiningStockEducation – Published on Mar 31, 2017
“David Erfle is a self-taught mining investor and also a weekly commentator for Kitco. After studying the potential of the junior gold mining sector to multiply wealth, in the mid-2000’s he sold his home and invested the proceeds into junior gold mining companies. His brokerage account subsequently tripled in value and then he quit his job and has been a full-time mining stock investor for the last decade. In this video, David shares regarding his journey of investing in mining stocks and offers advice and insights to natural resource investors.”
0:05 Introducing David Erfle
0:20 How David Erfle began investing in mining stocks
4:55 David’s approach to mining stock investing
6:55 Good early-stage exploration CEO’s don’t wear $10k suits
7:50 Identify value, not fall for promotion
9:10 How David survived a bear market in commodities
10:15 David’s thoughts on uranium & other hot commodities
11:40 David’s thoughts on gold
14:10 Info regarding David’s website
Shad:
Thats good stuff right there.I attended the Casey Uranium Summit years ago and listened to a presenter who was a baggage handler for an airline. His brother in law talked him into mortgaging his house and buying penny Uranium Co’s. The rest was history.
I was asking myself during that interview if I’d sell my house to put it all in the markets, but that’s a pretty big leap!
I always thought the plan was to make it in the markets and store it in real estate 🙂
Lots of opportunity in the next cycle in real estate,….double bottom coming within months…… 🙂
Trump Towers coming to a city near you……….
“self taught mining investor”………everyone here qualifies for that…..so what new…
what’s new……..nothing….comex still rigged, and CFTC still not doing anything.
(MQR) Monarques Gold Intersects 17.1 g/t au Over 5.9 Metres (19.4 feet) on Gold Bug (Croinor Gold)
April 4, 2017
Time to put a fork in gold, at least for the summer? Cue the theme music from Platoon. And can someone tell me why Dennis Lockhart is not in jail?
Gold was set up to make a run for the upper bollinger band on the daily chart, which was gently upsweeping. That may be ending today and instead a date with the 20 DMA looks more likely.
In any event, the $xjy:GLd ratio looks set to explode–problem is figuring the direction. I am leaning towards gold losing ground to yen.
The yen looks fine but will probably chop sideways for a little while. Notice that it was stopped by the upper daily Bollinger band:
http://stockcharts.com/h-sc/ui?s=%24XJY&p=W&yr=3&mn=7&dy=0&id=p33652442242&a=453633914
Weekly yen also looks fine:
http://stockcharts.com/h-sc/ui?s=%24XJY&p=W&yr=7&mn=3&dy=22&id=p74337940815&a=489358284
“Hanging Man” candle on that Yen chart.
Gold also looks fine and the upper Bollinger band is already pointing up:
http://stockcharts.com/h-sc/ui?s=%24GOLD&p=W&yr=3&mn=7&dy=0&id=p74693257883
There is a cup and handle on $usdjpy weekly chart.
There is also a cup and handle on $indu:$gold chart, which is more clearly seen on the monthly chart.
Unfortunately, everything has worked against gold over the last 7 years, and I don’t expect that to change.
That linear thinking will get you into big trouble, Spanky. Gold actually fell for a little over four years, not seven and it looks very good when priced in yen. That last several years amount to a bullish consolidation that will lead to gold adding to its five-fold advance over the last 15+ years.
Gold:Yen weekly:
http://stockcharts.com/h-sc/ui?s=%24GOLD%3A%24XJY&p=W&yr=7&mn=7&dy=0&id=p51238887360&a=516697513
As for yen priced in gold, I’m guessing we might see a pop then a drop in the short term.
Yen:Gold daily:
http://stockcharts.com/h-sc/ui?s=%24XJY%3A%24GOLD&p=D&yr=1&mn=0&dy=0&id=p18057993039&a=516694090
$XJY weekly Ichimoku looks bearish. It is right up against the lower border of the green cloud and looks like it is failing. It is also overbought now in terms of weekly stochastics. All signs point to a top in yen more or less right here. With this BS employment report, I don’t see how yen makes any headway against the USD.
There is also an inverse head and shoulders on $xjy:$gold.
Yes, it is bearishly below the cloud right but the MACD, TRIX, RSI, Bollinger bands, etc., keep me from worrying about a significant new down trend forming.
http://stockcharts.com/h-sc/ui?s=%24XJY&p=W&yr=5&mn=0&dy=0&id=p93729927232
BTW, appreciate your rebuttals. I am not expecting much in the near term, so if I turn out to be 100% wrong, I will be very happy. Right now I can’t envision the miners starting another leg up. It’s also hard for me to envision a second leg up starting without a dramatic purge to new lows. Basically, I don’t think we will see pretty consolidations until the whole complex is in a confirmed bull trend.
$sugar has gotten absolutely pummeled over the last 8 months. This week it is trading below the 200 WMA. The 50 and 100 are over the 200 too. $sugar should at least get a violent bounce here. The only point of caution is the monthly chart, where the stochastics have now crossed below 50 but are not yet oversold, which suggests more weakness or at least up and down choppiness over the next few months. Of course if $sugar explodes upward this month, that could change a lot, but it doesn’t seem realistic.
The Canadian dollar has been on the bullish side of neutral all year:
http://stockcharts.com/h-sc/ui?s=%24CDW&p=W&yr=1&mn=0&dy=0&id=p43819642610
There is a pretty clear head and shoulders on that chart unfortunately, which projects down to about 70 if it breaks the neckline.
There’s no reason it can’t go to 70 but that’s not a head and shoulders pattern that I would think much about.
http://stockcharts.com/h-sc/ui?s=%24CDW&p=D&yr=1&mn=1&dy=11&id=p20976647861&a=501512774
We got a large gap up in GCC this morning. It’s currently forming a black candle. It needs to close the day higher than the open. or we are coming back down to the 20 DMA and setting up for a plunge.
If you need something to worry watch this.
https://www.youtube.com/watch?v=vn6OVLK0MBI
https://www.youtube.com/watch?v=lbPQouWuKWY
Jim Rickards