GDX Bear Market Impending Crash Review

For the last 2 years and 3 months of publishing Cycle degree wave positions, not a “SINGLE” wave analyst has expressed any desire to want to switch over to Cycle degree wave analysis. So I will give readers fair warning as I may shut down after this 3 year exercise is done sometime around 2021 or the start of solar cycle #25.

I could stop all wave position postings and just put up a blank charts completely cutting off all wave counts and Cycle degree wave counting will come to a screeching halt, get buried in history, never to rise again. This site is not generating any funds to even maintain it, so this goes to show the lack of interest in Cycle degree wave analysis.

Even though it is the most real money tested wave count in history, viewers don’t even have the minimum of $5000 to start with.

 

I will show you my control entry numbers and what could be done if the planning is in full swing already. $100 shares is pretty lame but these are needed to test the waters and to start accumulating for the bottom. I have done this many times before where I push my trade allocation to the max. 500 shares of GDX below the $8 price will give you a good healthy position of $4000, and $1000 cash held back. The biggest fear factor will always come to play when we don’t have enough cash back up at a 4:1 ratio.

At major bottoms I have no problem with that but at major tops I do. This ratio should be reversed at every major top, play down lite is the name of the game and I use the 80/20 principle for that.   I will add a PDF that I use and then can be used to do all your calculations on for any trades you will ever do. I plan on having a $1200 share plan ready but may add more at the last minute.  All my short bets will be closed off as soon as we get to $8 GDX and the the control entry sequence must already be in place.

Once we know that we are averaged in below $8 then each and every trader feels the same thing connected to all that have at least one hundred share long positions.  We may be in the red but as soon as GDX crosses $8 every one around the world will see green at the exact time they were all online at the same time.  When you see “ALL” your lights go green at the same time as mine do, then this gives us a “green rush” that you will always remember for the rest of your life!

Now imagine we are still below $8 just hanging around watching the gold bulls fall from the sky. The minute you cross above $8 your entire position is already green and we just got started. This is not some fantasy I invented but it happens all the time if your right!  With a potential exit target at $55 your 500 share position in at $8, will cash out at $27,500 in March-May or so of 2019!

Now expand this to where a heavy hitter does the same thing but wants more than just wages, he wants a million dollar cash out, move. That involves 20,000 shares, but then must be shared with GDXJ to carry that kind of a load! You would need about a $160,000 trading account to pull that of. My calculations might be $66,000 USD cash out.  In the end going to cash is our home base when things get rough, or we switch direction. Cash is always the escape plan! 🙂  My plan is to get to an $89,000 base as I can draw out some wages with that and still build. Once you have a $233,000 trading account you generate income when you like, as you have room to spare. I have been paying myself already but only in very small $100-$200 draw downs.

I hope you see the importance of calculating out all your potential before, so there is lots of double checking and calculations that we must do. control sequence.rtfd   is a short PDF with just one suggestion of 5 positions for a control entry sequence. I calculate at least 3-4 of these to make sure you know the total capital outlay of any trade you will ever make.  It can be cloned, and scaled up for bigger amounts or companies.

I’m not an investor but a purely independent thinker that needs no outside indicators to make work. I rely on no other “Expert” opinion to survive in a major market crash and bear market of any kind.

 

 

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