Here we go again as another new ETF tracking the price of gold at about a 10:1 ratio. The volumes are still pretty low, and that is mostly the reason we have so many gaps on this trip down. Will all these gaps get filled?I’msure they will as I will apply my basic strong indicator that every gap has a 90% chance of getting filled. At this time the tally is 4 open gaps. Even at its worst low GLDM will still be above the $5 fear level when ETFs can execute inverse splits, with a possiable 4:1 reduction in shares.
The is some wicked trend and angle so we may not see a good bearish rally until GLDM hits the bottom trend line. We still have along way to go down, but it should match my gold futures chart very well. Readers are not going to get any wave positions on this chart until my “A” wave in Primary Degree arrives. I have never knowingly chased a bull market nor will I ever try chasing a bear market. There is going to be one of the best buying positions at an “A” wave bottom, so have patience for another 4-5 months.
What could be lining up this year is that the stock markets all crash but bottom along with gold. That would put both the DOW and gold end on an “A” wave in Primary degree.
This will drive investors nuts as by the time they figure out what happened, the markets will slowly start to turn bullish again. Once this first synchronization occurs then the odds become extremely high, for the two to stay synced for the final countdown as well. Both gold and the DJIA will bottom on a Cycle degree wave 4.
Think about GLDM sitting on a Death Cross, while the rest of the investing world is also sitting on Death Crosses. Real estate is going to take the biggest hit in history which will destroy most government and private pension plans or at least give them major valuation declines. Hedge funds will also get hit as they are those emotional speculators I keep talking about. The majority of all analysts report what the speculators are doing, not what the commercials are doing. That works fine with me as it’s the speculators that “Always” get into one trap or another. When the speculators become very bearish, then I’m very confident that they are trapped, and gold will go the opposite way.