GDX Update: Bear Trend In Effect, Stromger Than 48 Hours Ago
This is an update from 48 hours ago, a chart I published on-GDX.
I thought this was necessary because I watched as-GDX was recommended on national cable television today.
I strongly disagree.
Here are ONE DOZEN negatives I see in-GDX, and why I feel this-ETF is a sell:
1. Sell Fractals in effect (red rectangle on chart).
2. Alligator jaws NOW OPENED in tandem with sell Fractals. Alligator feeding in new down-trend. THIS IS YOUR DIRECTIONAL COMPASS.
3. Chop indicator (under chart) is well above the 38.2 shaded area. This indicates a ZERO trend and, at best, sloppy action with a downward bias.
4. Phase energy (lower top indicator) is below the zero line. Tried to rally with an upside cross of the zero line, BUT FAILED
5. DMI-top indicator-is bearish . NEW NEGATIVE CROSS (red over green). This is a sell signal.
6. Prices are trading UNDER the Ichimoku Cloud . This is a sell signal.
8. Prices are trading below the Ki jun-Sen baseline of the Ichimoku Cloud . This is a sell signal.
9. Prices are trading below the thick red Ichimoku Cloud conversion line. This is a sell signal.
9. The red Ichimoku Cloud conversion line direction is heading lower. This is a sell signal.
10. The Ki jun-Sen baseline of the Ichimoku Cloud direction is heading lower. This is a sell signal.
11. The CHOP ZONE indicator (under chart) is red, indicating a down trend.
12. The middle top indicator is a forward projection as follows: For an estimation of possible FORWARD TRENDING I use the Ichimoku Cloud Senkou Span A (Leading Span A): (Conversion Line + Base Line)/2)). This is the midpoint between the Conversion Line and the Base Line. The Leading Span A forms one of the two Cloud boundaries. It is referred to as "Leading" because it is plotted 26 periods in the future and forms the faster Cloud boundary. I then make an oscillator out of this and plot the progress up and down around a “zero line”.
I HAVE THE RESULTS OF THESE CALCULATIONS FOR-GDX IN THE TOP MIDDLE INDICATOR.
IT IS VERY NEGATIVE, AND HAS GOTTEN MORE BEARISH IN THE PAST 48 HOURS, MOVING FURTHER DOWNWARDS.
Do I see an upside reversal for-GDX? No, I do not. In fact, the chart for-GDX has gotten weaker.
Good luck to you in all your trades. Don.
I thought this was necessary because I watched as-GDX was recommended on national cable television today.
I strongly disagree.
Here are ONE DOZEN negatives I see in-GDX, and why I feel this-ETF is a sell:
1. Sell Fractals in effect (red rectangle on chart).
2. Alligator jaws NOW OPENED in tandem with sell Fractals. Alligator feeding in new down-trend. THIS IS YOUR DIRECTIONAL COMPASS.
3. Chop indicator (under chart) is well above the 38.2 shaded area. This indicates a ZERO trend and, at best, sloppy action with a downward bias.
4. Phase energy (lower top indicator) is below the zero line. Tried to rally with an upside cross of the zero line, BUT FAILED
5. DMI-top indicator-is bearish . NEW NEGATIVE CROSS (red over green). This is a sell signal.
6. Prices are trading UNDER the Ichimoku Cloud . This is a sell signal.
8. Prices are trading below the Ki jun-Sen baseline of the Ichimoku Cloud . This is a sell signal.
9. Prices are trading below the thick red Ichimoku Cloud conversion line. This is a sell signal.
9. The red Ichimoku Cloud conversion line direction is heading lower. This is a sell signal.
10. The Ki jun-Sen baseline of the Ichimoku Cloud direction is heading lower. This is a sell signal.
11. The CHOP ZONE indicator (under chart) is red, indicating a down trend.
12. The middle top indicator is a forward projection as follows: For an estimation of possible FORWARD TRENDING I use the Ichimoku Cloud Senkou Span A (Leading Span A): (Conversion Line + Base Line)/2)). This is the midpoint between the Conversion Line and the Base Line. The Leading Span A forms one of the two Cloud boundaries. It is referred to as "Leading" because it is plotted 26 periods in the future and forms the faster Cloud boundary. I then make an oscillator out of this and plot the progress up and down around a “zero line”.
I HAVE THE RESULTS OF THESE CALCULATIONS FOR-GDX IN THE TOP MIDDLE INDICATOR.
IT IS VERY NEGATIVE, AND HAS GOTTEN MORE BEARISH IN THE PAST 48 HOURS, MOVING FURTHER DOWNWARDS.
Do I see an upside reversal for-GDX? No, I do not. In fact, the chart for-GDX has gotten weaker.
Good luck to you in all your trades. Don.