GDX update 12/21

GDX: Before you get started, please read my latest GLD update here, as that is my alternate count for GDX. Yes, GLD and GDX do not necessarily have to be in the same count, which is fine. All indices need to be treated on their own. So what does this mean? I still prefer to see GDX in (orange) micro wave-4 of minute-c of minor-c of intermediate-c of major-b, with one last move down -micro wave 5- to complete all of major-b. The alternative is that GDX, like GLD is working on a leading diagonal (LD) 1st wave already. However, for now I don’t have any evidence for it because there are still only three waves up off the August lows. GLD, on the other hand, has a much better LD pattern with already 5 waves up. Hence, what could happen is that once the LD in GOLD has completed, which is labeled as wave-i, then its wave-ii can usher in micro-5 in GDX to complete major-b. For now, from a technical perspective, price was rejected at the upper orange trendline and (not shown here) the 200d SMA, while the weekly RSI5 is overbought. Hence, a retrace at a minimum seems to be in order. The preferred view is that all these are enough to usher in micro-5. Ultimately when micro-5 completes all the technicals and money flows are positively diverging, kicking in major-c to new highs. Now let’s see if we can get what “I wish for” 😉