First published on Sat July 8 for members: As I see many metals investors and traders begin to throw in the towel, I wanted to take this opportunity to again explain why I will not count myself amongst them just yet. However, I will explain below what it would take to have me begin to look for lower lows in the overall complex relative to 2015, since I have been asked so often. (And, I usually get those questions as the market bottoms and begins a strong rally).
While the market did not follow through on the immediate bullish set up I outlined over the last several weeks, it does not invalidate the larger degree perspective we still see in the market. And as sentiment becomes more and more bearish, there are many more signs that a strong rally is setting up to take hold. But, again, even though the smaller degree immediate bullish set up invalidated, and we will have to await the next one to set up, I think that anyone aggressively maintaining on the short side of the market will likely overstay their welcome.
Let’s start with the larger degree structures. Back in 2015, the greater probabilities suggested that the metals complex completed its long term ‘pullback,’ right into the zone we were targeting for a long-term bottom. That is why I was suggesting our members enter their long-term positions at the end of 2015, and it was also why we began our EWT Miners Portfolio at that time.
This post was published at GoldSeek on 12 July 2017.
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