Gold has been so fickle. Some weeks Silver confirms, some weeks the miners confirm, some weeks the $USD confirms. Today Gold , Silver and the Miners are all at interesting points on their charts.
Here is what I see:
Look on the Bullish Percent Index. Almost every month, the trend in the second week of the month has been pretty informative. Notice how informative the second week is. A few months it extended to the thrid week in a sideways pattern, but a breakout up or down was meaningful.
Looking at the actual tradeable issues, GDX, GOLD, SILVER are all in a sideways range.
Looking at the ratio, it is in a sideways range. Regardless of the way we want the price to move, this looks like the week we get the information and it should not be ignored. The second week gives great clues. I plan on being very flexible.
Good trading,
Greg Schnell, CMT
