In the last few weeks, many of the COT reports I watch, have shifted very quickly ,in gold, silver, Britsih Pound, US dollar, Canadian Dollar, and a few others as the hedgers or commercials pile on som long positions. XGD, the Canadian Gold stock index has a completely different pattern than most other related ETFs. I have closed off my GDX short positions this morning and have added a small 100 share long position as a test. There could be more downside to go, and I still have some PUTs and Calls out that can add a bit of extra insurance, in both directions.
It would be nice for GDX to stop before a new low gets hit, as these expanded type moves can do that.
I moved the “A” wave in Primary degree to the 2016 bottom, which is also a time leap of about 3 years. Just by changing “one” letter we “time travel” on paper 3 years into the future. The EWP is not about just flipping numbers and letters around like flipping hamburgers on a grill, but the entire wave counting world does exactly that.
The Gold/Gdx ratio is at a bit over 66:1 with about 84:1 being the extreme cheap side in my records. That 66:1 number should expand if GDX keeps dropping for the rest of Sept.
There could also be another mean spike to the downside, which is what usally happens just before it turns.