Update: All That Glitters Is Not GDX: A Dozen Bearish Signals
Yesterday I published a daily chart for-GDX that was very negative. Today GDX-fell 3.62%. I am still negative. Why?
Here are ONE DOZEN negatives I see in-GDX, and why I feel this-ETF is a sell:
1. Sell Fractal in effect (red rectangle on chart, only top is visable because of chart distortion).
2. Alligator jaws opened in tandem with sell Fractal. Alligator feeding in down-trend. THIS IS YOUR COMPASS.
3. Chop indicator (under chart) is 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 heading LOWER. The action is below the zero line.
5. Momentum (middle top indicator) is the 5/34 measure, and this is bearish action and is heading lower. Histogram within is also under zero line.
6. Prices are trading BELOW the Ichimoku Cloud .
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. RSI/ Stochastic (top) is heading lower after a bearish cross.
In my opinion-GDX is heading LOWER. I have given you a dozen negative signs as my objective evidence.
I have also placed red VERTICAL BARS on the chart so you can see how CHOP, FRACTALS, and the INDICATORS work with each other.
As the CHOP heads below the shaded area, trigger points occur, both up and down (red vertical bars for DOWN).
IMPORTANT: IF CHOP MOVES BELOW THE SHADED AREA, AND YOU STILL HAVE THE NEGATIVE INDICATORS, THE DOWN TREND GETS STRONGER.
Because of the recent sell Fractal and other negative signs, its hard for me to envision GDX-heading into a new up-trend.
Good luck to you in all your trades. Don.
Here are ONE DOZEN negatives I see in-GDX, and why I feel this-ETF is a sell:
1. Sell Fractal in effect (red rectangle on chart, only top is visable because of chart distortion).
2. Alligator jaws opened in tandem with sell Fractal. Alligator feeding in down-trend. THIS IS YOUR COMPASS.
3. Chop indicator (under chart) is 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 heading LOWER. The action is below the zero line.
5. Momentum (middle top indicator) is the 5/34 measure, and this is bearish action and is heading lower. Histogram within is also under zero line.
6. Prices are trading BELOW the Ichimoku Cloud .
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. RSI/ Stochastic (top) is heading lower after a bearish cross.
In my opinion-GDX is heading LOWER. I have given you a dozen negative signs as my objective evidence.
I have also placed red VERTICAL BARS on the chart so you can see how CHOP, FRACTALS, and the INDICATORS work with each other.
As the CHOP heads below the shaded area, trigger points occur, both up and down (red vertical bars for DOWN).
IMPORTANT: IF CHOP MOVES BELOW THE SHADED AREA, AND YOU STILL HAVE THE NEGATIVE INDICATORS, THE DOWN TREND GETS STRONGER.
Because of the recent sell Fractal and other negative signs, its hard for me to envision GDX-heading into a new up-trend.
Good luck to you in all your trades. Don.