Did You Know 93% OF Assets Had A Negative Return In 2018!

January 11, 2019

Chris Kimble, Founder of Kimble Charting Solutions shares some very interesting and important charts focused on the US equity markets. All the charts we discuss are below in order of discussion.

Chris Kimble January 11, 2019

Click here to visit Chris’s site – Kimble Charting Solutions.

Percentage Of Assets With A Negative Return
Similarities in major markets
NYSE Advance/Decline Line
Mid-Cap Rising Channel
US Money Flows

    Jan 11, 2019 11:25 AM

    I continue to believe this is the best GDX has looked in 7+ years technically. I also believe the 20 WMA will provide solid support for years to come.

    The problem is in the short run, GDX has put some distance between it and the 20 WMA, which is currently at 19.40 and rising. It could decide to retest that MA at any time, which of course will be a buying opportunity. The other issue on the weekly chart is the red Ichimoku cloud that still stands in GDX’s path–to keep its forward momentum it looks to me that GDX will have to close above $21 by the week of March 18. If it fails to do so, GDX will be in danger of drifting sideways to lower for most of 2019 IMO.

    Obviously there is quite a bit of time for up and down movement between now and then and I imagine the banksters will make full use of the playing room (i.e., the distance between current price and the rising 20 WMA).

    It’s hard to advise anyone to buy right now, but then again I have been holding a full mining position for 3.5 years and will get the benefit of any upside surprises. You either accept that this is a bull or you don’t. If you do, you take a deep breath, take a position and have to keep in mind that there is room for a drawdown any time price is above the 20 WMA.

    The miners that bottomed after GDX–in Nov. or December–especially silver miners, don’t look nearly as good technically as GDX on the weekly or daily charts, so it is much harder to gauge how they might react if GDX corrects. Unlike GDX, most of those miners’ 20 WMA hasn’t even flattened out yet, much less started rising.

      Jan 11, 2019 11:46 AM

      The silver miners lag GDX when silver lags gold. As silver confirms gold, as I believe it will, then the silver miners will catch up technically.
      I am still convinced that the silver space will beat the gold space this year and the outperformance has already started — weeks ago…

        Jan 11, 2019 11:05 PM

        GDX’s 50 dma is set to positive cross the 200 dma sometime in mid February based on a very rough extrapolation. Between now and that cross, I’m anticipating some scary action in GDX and the metals. I am not anticipating a gentle ramp from here, much less an explosive rally. Could I be wrong? Absolutely.

          Jan 11, 2019 11:09 PM

          Depending on your definition of scary action, I think it might still have to wait a little. The weekly GDX chart doesn’t yet point to scary action of a scale we’d expect to see within an intermediate term move. In fact, it is still supportive of further gains before the overbought daily chart is allowed to have its way…

      Jan 11, 2019 11:47 AM

      Should have said “as silver continues to confirm gold…”

    Jan 11, 2019 11:40 AM
    Jan 11, 2019 11:16 PM

    Three in a row: Silver closed the week above its weekly Bollinger band yet again…