Metals and Miners should earnestly begin their descent if March 2nd (give or take a day) is going to print the next cycle low. We have begun to see subtle signs of rollover but not enough to announce the correction officially.
I included early March correction targets just in case prices breakdown next week. These are preliminary objectives and may need adjusting if prices deteriorate faster or slower than anticipated. I was going to wait to draw up the targets until tops were confirmed, but several members requested them early.
Prices have not conformed to traditional correction methods, so I don’t intend to short the potential move lower.
-US DOLLAR- The dollar rallied Friday, closing back above the 10-day EMA. If this is just a pullback, prices need to remain above 99.50 on a closing basis. Below that level would set a course to 95.50 by Spring.
-GOLD- Prices are testing but remain below the $1,246.60 high. It takes a close below $1,230 to endorse a cycle low in early March. Preliminary targets suggest around $1,190. A correction won’t be confirmed until the RSI (top) breaks trend.
-SILVER- Prices have reached a near flawless measured move in time and price. There is little room left to touch the trendline around $18.25; the pattern is near exhausted. Closing below $17.96 (200-day MA) will signal the correction phase with an initial target at $17.00.
-GDX- The MFI (above) has broken trend, and the MACD (below) has fully crossed over. It would take prices closing above the upper consolidation line ($25.35) to prevent a correction. Opening target is around $22.50.
-NUGT- Initial target for NUGT is around $9.00.
-GDXJ- Prices need to close above $43.01 to prevent an interim correction to around $36.00.
-JNUG- The potential correction target for JNUG arrives around $8.00.
-SPY- Stocks could continue higher into March. Once an interim top is in, we should get a 5% correction.
-WTIC WEEKLY- Oil continues to from Doji’s as prices crawl along the 10-week EMA. Closing below the 10-week will signal a correction, but until then anything can happen. It’s possible we see a false breakout to $56.50 before an intermediate-term correction.
