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Watch for a reversal in the trends come November

October 20, 2015

Doc joins us with his assessment of the gold market as well as the US markets. He is saying we could continue on our trends for a little longer but watch for November for a couple reversals.

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Discussion
37 Comments
    Oct 20, 2015 20:43 AM

    ****** LIKE I SAID GOLD AND SILVER WILL CONTINUE TO MOVE UP AND IT IS ******
    RELAX…………………!

      Oct 20, 2015 20:46 AM

      yes, you did…………….

        Oct 20, 2015 20:53 AM

        with no explanation for why….just because…..

          Oct 20, 2015 20:56 AM

          NO!…………….because my computer algo’s all show GREEN!

            Oct 20, 2015 20:22 AM

            Explain please.

          GH
          Oct 20, 2015 20:01 PM

          100% agree listener.

          Whether I agree or not, if someone offers a reason for their opinion that makes me think, it’s valuable. E.g. a chart, some evidence, some logic.

          All-caps proclamations about the results of one’s algos? No.

            Oct 20, 2015 20:51 PM

            Who are you referring to Mark?

            Oct 20, 2015 20:55 PM

            Mark is just jealous.

            Oct 21, 2015 21:06 AM

            Guys, Mark warned about today’s action too. When it comes to black box trading, there’s not much to say about evidence or logic.

            I do not believe that Mark is throwing out lucky guesses.

    Oct 20, 2015 20:45 AM

    P.S…….AND JUST WAIT TIL THEY START QE4, which is right around the corner!

      Oct 20, 2015 20:27 AM

      Gare thinks we are already peaking around that corner.

    Oct 20, 2015 20:47 AM

    DOC, …….positive………great………I hate negative news.

      Oct 20, 2015 20:52 AM

      EIGHT TRADING DAYS………END OF MONTH……….

        Oct 20, 2015 20:34 PM

        yeup!

          Oct 20, 2015 20:38 PM

          Good thoughts today Doc….good questions from Big Al & Cory. A little sanity is refreshing after reading so many bizzaro editorials out in the main stream media today.

            Oct 20, 2015 20:09 PM

            Sanity is always a good thing, Excelsior!

            Oct 20, 2015 20:12 PM

            Agreed Big Al. It’s rare these days, but your site is always a breath of fresh air.

            Thanks for all you do.

    Oct 20, 2015 20:52 AM

    ******* GOLD AND SILVER RISING DESPITE THE DOLLAR RISING! ******

    Oct 20, 2015 20:59 AM

    Doc: Great comments on gold today. Does the up-tick in VIX today worry you that you have missed the high in the conventionals?

      Oct 20, 2015 20:43 PM

      Silver, I took a small position in the vixy today. I plan on adding the further we get into this week and next. The odds are increasingly for a downturn.

        Oct 20, 2015 20:42 PM

        Agreed gentleman. I was a bit too early to the Volatility party, so today just got me closer to my average cost basis, but I’m thinking post-FOMC once the news circulates and peculates, that the general markets will start rolling back over an volatility will increase.

        In the chart below, it is looking like there may be a little further to fall for the VIX in the very short term (and 5-8 trading days is very reasonable Doc), but if you look at the RSI and Slow Stochastics…..it is already oversold. The MACD hasn’t crossed yet, but it looks imminent in the next few days. A reversion to the 50 day and 200 day EMA is quite likely over the next 2-3 weeks.

        http://stockcharts.com/h-sc/ui?s=%24VIX&p=D&yr=0&mn=6&dy=0&id=p09892530011

          Oct 20, 2015 20:00 PM

          Excelsior; you’re getting scary—those are some of my thoughts in addition to others.

            Oct 20, 2015 20:04 PM

            I have a position in TVIX personally and am ready to add to it if that MACD crosses.

            We’ll see how it goes……

            Oct 20, 2015 20:06 PM

            See my comment, Doc! Birds of a feather!

        Oct 21, 2015 21:21 AM

        How do we trade this. Today the vix is down 8.5% at 10:20 am and vixy is flat at 6 cents up. It never made sense to me.

    Oct 20, 2015 20:59 AM

    Great comments today Doc.

    bb
    Oct 20, 2015 20:12 AM

    A few days ago we were talking about Syria, I was saying the Americans will either get out of the way or save a little face by working with Putin. I said it should be called somthin like “operation kiss Putin butt”.
    As it got closer I mentioned “pucker up Obama”

    Well, here it is “operation kiss Putin butt” with a name that saves face for Obama,

    “The Memorandum of Mutual Understanding between the Defense Ministries of Russia and the United States on preventing incidents and providing for aviation flights during operations in Syria”

    That name should keep people appropriately confused.

      Oct 20, 2015 20:37 AM

      Excellent news bb! Thanks for posting that since I had not seen it until just now. It is an answer to my question of last week when I wondered out loud… “who the hell is in charge over there”?

      Anyway, this is very encouraging and shows signs of cooperation over the skies even if missions are not alike. The last damn thing any of us needs is an “accident” over the airspace of Syria; the odds of which were not favourable with so many air forces involved.

      I found a copy of the newspiece. Linked below.

      Russia, US sign ‘open skies’ agreement over Syria — Middle East Post
      http://middleastpost.com/russia-us-sign-open-skies-agreement-over-syria/

        bb
        Oct 20, 2015 20:13 PM

        I think the world just changed, sept 28 maybe.

        The “event” guys were saying consciousness expands, ya tin foil hat stuff, Shemeta, sumtin gonna happen.

        The change being the American war machine just got exposed for what they are and the consequences of them, that tipping point thingy, the “war machine” just got collared.

        That’s a big change, and this agreement shows they are not going to go toe to toe with the ruskies or Chinese. Things are looking up for our grandkids.

    Oct 20, 2015 20:24 AM

    Well so far the trend has been to crap on gold and silver prices and there have been intermittent periods of relief when the price rises just a wee bit. Are you talking about a real change or just a temporary break from the normal routine?

    Oct 20, 2015 20:07 PM

    Is that a small H&S forming on the $HUI on a 1 or 2 hr chart? RS forming now?

      Oct 20, 2015 20:02 PM

      Good catch Bill. I think so. I have been watching a similar pattern form on some individual miners. Newmont for example. It’s not complete but looks promising and lends confirmation to the idea gold is about to fall.

      Oct 20, 2015 20:09 PM

      Check out this chart for Yamana. Same thing a head and shoulders pattern looks to be forming there as well. That’s why I feel we may pull back in the miners soon.

      http://stockcharts.com/h-sc/ui?s=AUY&p=D&yr=0&mn=2&dy=0&id=p45845110052

        Oct 20, 2015 20:57 PM

        Thanks Shad.

          Oct 21, 2015 21:11 AM

          I’ve looked at a number of other gold stock charts and see the same pattern playing out. However, I also noted that the right shoulder had a higher high and higher low than the left shoulder on almost every chart. This is typically more bullish than if that were reversed. For this reason, I’m going to leave the door open that if Gold surges suddenly the miners could launch out of the H&S pattern. I give that a 30% chance, but 70% chance the metals and miners will keep pulling back into next week.

            Oct 21, 2015 21:02 AM

            Based on the look of your RSI, MACD, and Sto, this might be the way to look at your chart:
            http://schrts.co/TUQVId

            Oct 21, 2015 21:08 PM

            Thanks. Yes, it looks like the end of the pennant pattern may break to the downside based on the MACD about to cross over.