What a difference a day makes. The metals complex is finally giving us a nice 2nd wave retracement across the board.
First, in GDX, we are now sitting right at the .618 retracement of the prior rally, which is a standard target for a 2nd wave. For those that have been patiently awaiting entries, this is a good place, with a stop being placed just below the .764 retracement.
Second, the GLD is also at its .618 retracement, and the same scenario applies as well.
As far as more aggressive options trades, I highlighted my plan in today’s live video, so please listen to that for my 3-tranche plan for entering aggressive options trades.
Silver is giving us a nice wave 2 as well. But, as many who have been following me for years proabably know, I much prefer seeing a positive divergence on the MACD on the 144-minute chart to have strong confidence we are bottoming in a corrective pullback. That means we can still see a 4th wave bounce followed by a lower low 5th wave in the c-wave of this wave 2. Clearly, an impulsive rally though 27.50 would suggest we have seen one of the lower probability bottoms without those divergences.
But, overall, I would want to see us turning up rather soon to begin our bottoming process for this pullback.