Elliott Wave 5.0 "Reboot"

Monday, February 8, 2016

GDX Looking A Gift Horse In The Mouth!



Gold has gone vertical and some gold stocks have gone vertical as well. The HUI is the main index which has gone vertical, but also has several gaps that opened up in the rocket ride, The GDX is loaded with open gaps, with about 4 gaps open on my count.   Gaps will always get filled and it is just a matter of time when they do get filled.  I have a pretty clean impulse with this GDX rally, but "C" wave bull markets can contain them. 

Gold itself is a diagonal as this GDX is not.  That is very normal and I don't read anything into that.  For those who are ignoring a 40% gift dumped on your lap, and you want more, you will pay dearly for this greed.  Sure, there is no way of knowing  if only a correction is due, but this will show up in due time, but if this pattern is actually an expanded pattern, then the GDX could crash to a new bear market low.  All it takes is for stocks to find a base and slowly work their way back up and stock mania could be back on! 

Shorter term I am extremely bearish, unless I see a very corrective pattern starting to play out.  
GDX at this time has gone higher than GDXJ which I think is due to the fact there are less stocks inside GDX than GDXJ.