Monday, January 9, 2017
Jojo identifies resistance levels for GDX
I'm a bit disappointed, because he should analyze GDX in context of selling and buying volume, yet he didn't. I think the absence of volume at the December low, and the strong buying volume of the past week, tell a slightly different story than what he's reading, especially in the context of year-end tax-loss selling.
I also think the October breakdown was the Trump selloff - some funds who were paying for superior election prediction analysis (i.e. the stuff with a much higher price tag than what a CNN poll costs) realized well ahead of time that Trump was going to win the battleground states, so they sold off before the election even happened.
And we know the election also created a huge skew across market sectors that still needs to be worked off. Frankly I don't see how a retest of even the December low can happen this year.
Nevertheless, Jojo does TA well, and whether or not the above market analysis means anything, still the fact remains that the market trades at least partially on TA. So here's his warning, and it's worth considering:
Daily Gold - gold stocks leading but approaching resistance levels.