<Gold-silver-XAU are completing major secondary lows.>
Completing secondary lows? The XAU closed today below its low for all of 1999. That is very bearish and signals that a retest of the August 98 lows are coming. ABX, HM, PDG, FN & DROOY are trading below their lows of 1999. HGMCY is dropping like a rocket. If it falls below $5, the margin calls will come, pushing the stock of this great company much lower.
Last summer Gold bottomed out at a 8% Market Vane Bullish Consensus. We are at 24% now ( and dropping).
I'm looking at ABX at $12.75-$13, HM at $5-$5.25, PDG at $6.5- $7, Drooy at .875-$1, and HGMCY at $3.75 before this is over and we get some kind of rally.
If the 48 level is broken on the XAU, there is no support and a free fall may develop.
When will the decline end? When these stocks get to such outrageously cheap levels that people can't control themselves from clicking their mouse to buy them. The only problem with that view is that the stocks trade based on the POG, which, by the way, closed below its 200 day moving average for the first time in about 3 months today.
Moreover, next week is the beginning of the month and I would be shocked if the Nasdaq did not rally strongly going into the April 15 Deadline for funding retirement accounts for 1999. |
