There is a
universal understanding that no major trend can exist without Major Institutions
being ‘in on’ the trade. With the deepest pockets on Wall Street, these BIG
BULLIES are also notorious for manipulating the displacement (of shares) at key
bottoms in order to better position their entry points! The most traditional
and common method is a running of stops at crowded support levels. It creates
a forced debacle where prices are in a reeling tail spin, leaving investors totally
shell shocked! Then within days, or in some cases intra-day, prices immediately
reverse back to their collapsing point.
The Miners
is a working example- because its chart pattern is a clear cut technical
aberration with now an oversupply of shares
up for grabs! And this inspired stroke of selling has generated a deeply
oversold condition that is, comparable to the “July Bottom”---- of which came
several days prior to a multi-month advance.
But this
discrepancy and perhaps most encouraging sign of all is ---that prices are residing
at higher levels! Let me explain.
Elevated readings
of the ‘Gold to Miners ratio’ have a credible tendency to mark important bottoms.
Readings, especially this past week, certainly justify the current climate as not
only bottom worthy, but very stretched-- while holding safely above the “July
lows”.
There is an
implication here! And that is, that the most recent three day wipe out is
unlikely to go much further because everyone who would’ve sold out, has already
done so! This ground halting reversal will be in keeping of a larger
framework of the current Bull market’s livelihood, and that is, maintaining an
orderly (trend shaping) sequence of higher highs and higher lows.
The Complete
Coverage Report offers two subscriptions—$9.95/month and $100/year. It is well
worth the information received.
Darah
We go down first before we go up!
ReplyDeleteGenerally speaking, panic moves come at the end of a decline---not the start.
ReplyDelete