Metals & Miners Transforming - Market Analysis for Apr 18th, 2018
By
Zac Mannes
Gold is looking glittery this morning! I think this should still be the b wave of the wave (ii) following our more compressed LD off the 1303 low to start wave circle iii of 3 of (3) of P.3. But I am certainly NOT going to fight against a breakout over the 1370s!
Remember >1370s is a break over the 2016 highs... seems like forever ago and if you listen to some folks in the main Markets room and on Twitter you would think GC was UNDER 1000... Many of these people are really ONLY invested in GDX/GDXJ. That limited view into the Metals & Miners world has certainly been frustrating, but you enlightened Mining Stocks Service subscribers know there is more to this sector than meets the eye.
That said lets talk a little about the micro structure of GDX (and GDXJ) which continues to be fantastic off the March low in the larger purple LD... it should be completing the (5) of C of iii soon in the 23.30 region and then fading back as an ABC to the 22.20-21.80 region. It is possible though that this is ALSO the blue b of (ii) just like gold, but as an expanded flat for (ii) (that is when the "b" makes a higher high).
You guys are no strangers to the "Blue/Orange Theory", but a quick walk through the halls of the Mining Stocks Service and you will see MANY-a-chart set for strong breakouts in either a 3 of (1) or iii of 1, or some even more...
I have said it before, but I see things VERY similarly right now to the Jan/Feb 2016 period where things really started to get energized in the Primary wave 1. Some of you might remember the POTENTIAL GDX had ~ Jan 25 2016 to extend lower, BUT we were seeing strength in many individual names and added a lot to our Model Portfolio. Once those few slivers of All-Spark started to touch the rest of the sector the surge was ON.
I see MORE individual names now poised to be Heroes. But I am not talking about a few lonely tragic Greek Heroes... no, more like a whole force of super robot warriors lead by some "Prime" stocks!
Autobots Engage!
