GDXJ Junior Miners Gold Stock Review: 2010-2017

 

 

I believe that the big top back in late 2010 was the Cycle degree wave three, and the bear market that followed was only one part of the Cycle degree wave 4 correction.  The 2013 bottom has a special meaning, as there were many obvious reports of gold stock insider buying. Apparently they have a history of  buying just a few times in a bear market, and don’t buy as frequently as the seasoned contrarians do.

This bear market works well as one big zigzag, with the last 5 waves being a very ugly diagonal set of waves.  These types of waves are very common and are a real challenge to count out in real time.   When GDXJ hit bottom in early 2016, the Gold/Gdxj ratio hit 62:1. This was an insane number and represents and extremely gold stock oversold situation. Virtually all gold stock indices or ETFs gave us the same insane ratio indicators and we have to remember that when we look forward, up and down any set of wave positions. There is much more to the EWP than just mindless wave counting, which the majority practice.  The real contrarians have a far better understanding when buying low than any wave counter does because they have accumulated more wealth than any wave analysts I have ever read about.  

Anyways, I can go on and on about how inefficient wave trading really is as it will never change anything. They will continue to miss every major bull market that will come down the pike.

Before the 2016 spike in gold stocks you have to accumulate positions long before the bottom, which the EWP does not teach you. In reality the EWP has to confirm what the contrarians are doing and are going to do in the future. 

Even if Gold stocks are in a big fake bull market contrarians will never be left behind. (Primary Degree “B” wave bull market)  They know that markets travel from extreme oversold conditions back to extreme overbought conditions. It is the Gold ratios that give us an objective reading on the markets, and on Friday this ratio was about 31:1. This is the most expensive since the gold stock bullish phase began, but still far away from any extreme expensive reading of 10:1.

Just because gold stocks made a decline, I would be crazy to show you an extremely bearish wave count at this time, when I know my contrarian friend has been buying.  

This bull market will not end until we read about consistent gold stock insider selling, matched by an extremely expensive Gold/Gdxj ratio.  Many mainstream analysts, wouldn’t touch gold stocks at this time, but I bet they will turn bullish once a new gold stock extreme gets reached. 

GDXJ should eventually hit anywhere on the top of my trend line, and this will depend on the speed that GDXJ will travel at. This will be true with all the gold stock indices and ETFs. 

Short term anything can still happen, but longer term this bull market is far from being finished. 

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