10/7: GDX and XLE update

GDX: Gold miners have been beaten to death and are thus a buy!? It appears Primary A has bottomed and price is now in Primary B, targeting $33-$46 with an ideal target of $40. If price can break out above $16, then the next target will be $18. The recent advance over the past 2 weeks certainly looks bullish, but in case I am wrong we’re dealing with one last corrective wave up and then down to compete all of A.

GDX

XLE: As gold and gold miner, also the energy sector has been beaten to pulp. However, for now I actually only expect a bounce to $70s before the last and final leg takes price to $54, which is where c=a. This is also where primary B bottomed, and prior even older support resides. So careful going long; don’t get greedy 😉

xle