Friday's shakedown was the most brutal we've seen in, well, weeks, but we can infer it was merely corrective, since the high which preceded it exceeded the important 'external' peak at 92.76 recorded on April 4. The downtrend has farther to go nonetheless, and if you plan on bottom-fishing, I'd suggest waiting until TLT falls to at least 90.31. Please note, however, that a failure of that "hidden" support to hold would imply more slippage toward the important low at 88.68 that occurred on May 29.
A two-day close above the trendline would likely signal an end to Bertie's insufferable tease. It is a consolidation, of course, but enabled by sponsors who evidently are too gutless to lift the lid until significantly higher prices seem like a sure thing. Perhaps they can enlist the help of Roaring Kitty or some other flashy stock tout who has the ear of a malleable Wall Street Journal reporter? In any case, when Bertie finally takes off, which it sure as shootin' will, you can bet that its infinitely patient handlers are shooting for $80k or higher. ______ UPDATE (June 15): We all know that Bertie will fly toward $80,000 just as soon as its handlers sense that the time is right. Not quite yet, evidently, since this bitcoin proxy has fallen moderately since it last flirted with the trendline shown in this updated chart. The above analysis can stand, to wit: It will take a two-day close above the trendline to trigger a breakout that should be regarded as inevitable. For your further guidance, the trendline will decline to around 71,171 by Friday.
I still consider a pullback to x=5105 more likely than a move straightaway to D=5542. A subsequent rally to the target would not be a done deal, either, given the mild struggle bulls have had surmounting the midpoint Hidden Pivot's gravitational pull. Impale it they did not, and that leaves the pattern's completion to D at least mildly in doubt. We can still use p=5397 as a minimum upside objective, since that is the most logical place for this rally to stall.
Friday's nutty finale should remind us that the agent responsible for such behavior is none other than...ourselves. Lest you take the vicious, end-of-day short-squeeze too seriously, the thumbnail chart puts it in perspective. The futures have in fact rolled down without even reaching 5398, the p2 'secondary pivot of the still-bullish pattern shown. They are a better bet to fall to 5108.25 first than to reach D=5542.50 straightaway. We'll be ready in any case, especially for a feint marginally above last week's record high at 5368.25. That was itself a slightly new all-time high, creating ideal conditions for a top of potentially diabolical cleverness.
The bullish pattern shown, with a 457.12 target, is unlikely to steer us wrong, given the precise, confirming pullback from p=383.41. It is ambivalent on the question whether D will be reached, however, so we'll accommodate simply by being prepared for that -- or anything else. My gut feeling is that the stock will need to correct further before that could happen, so we'll look initially for a 'mechanical' buying signal on a pullback to p=383.41. The by-the-book stop-loss would be at 358.84. By implication, any rally of 10-25 points should be regarded as an opportunity to get short.
Gold has repeatedly resolved double tops in favor of bulls for many years, but always differently. The current pair of peaks is tightly spaced, giving the impression of weighty distribution. The 2530.40 rally target on this continuous weekly chart is viable nonetheless, and there is no reason to presume it won't be reached. But that does not preclude a sharp pullback first to the red line (p2=2071.70). It makes a logical target if bulls are to be rebuked yet again for their steadfast belief in the quaint idea of gold's historical primacy as money. For now, let's draw our inferences from the lesser charts of August Gold, which currently provide an easy path down to 2300-2320. ______ UPDATE (June 7, 12:15 p.m.): Gold has in fact followed an all-too-'easy path' south, to a so-far low today of 2320.20. That is the upper threshold of the corrective range I'd forecast. However, I'd be surprised if the futures did not take out May 3's 2308.70 low and then diddle 2300 just for good measure.
Silver's continuous weekly chart is more encouraging as to whether an ambitious longtime rally target will be reached. The target, a Hidden Pivot, is 36.03, about 18% above, and the strong move in April past p=26.67 on first contact attests to the strong likelihood that more upside to D is coming. The ascent looks too steep, however, to continue without a punitive correction. Regardless of whether the expected pullback comes down to 'mechanical' buying territory near p=26.67, we'll stay focused on the lesser charts to be ready for the turn.
The easy, decisive pop through p on the first attempt implies not only that D=49.15 will be reached, but that last week's pullback to the red line offered an attractive opportunity to get long mechanically. Even so, further accumulation and a running start may be needed to supply the requisite thrust, so we should be prepared for more backing and filling between 43 and and 45 before GDXJ leaves the launching pad. There has been almost no mention of this vehicle in the chat room lately, but I will provide tradable guidance if it is requested. _______ UPDATE (June 7, 12:27 p.m.): Today's vicious plunge triggered a 'mechanical' buy signal when it touched the green line (x=42.20). This Hidden Pivot level is tied to the 49.15 target given above. However, there are no guarantees that the implied bounce from between here and C=39.88 will get any farther than p=44.52.
On the evidence shown, I'm unwilling to call this one, at least not yet. TLT tripped a theoretical 'buy' signal when it touched the green line (x= 91.88) two weeks ago, but the odds are not yet good that it can complete the implied trek to D=105.49. Long-term interest rates would be well below 4% if that were to happen, implying the U.S. would be in the throes of a recession deep enough to kill consumer inflation. That seems likely to occur at some point, but it would probably be sooner rather than later, since another powerful wave of inflation is already in the pipeline due to soaring shipping costs that are hitting now. Regardless, if TLT can push without a breather above the April 4 'external' peak at 92.76, that would shorten the odds that a big move is under way.
July Crude ended the week just above a low at the D=76.66 correction target shown in the chart. The pattern that produced the target is sufficiently delicate and precise to suggest that even a slight breach of D would be telegraphing further weakness. This would be a break for motorists and also help mitigate inflation, albeit probably not enough to quell some other powerful inflation inputs, including a dramatic rise in shipping costs. Slippage beneath D would likely send the July contract into the range 74-75 for yet more distribution.
