The swing for gold is in!
On Friday I said, "A swing low has not happened yet, but this was a nice setup to achieve one on Monday."
The swing is in, and we have also broken the declining daily cycle trendline. This validates the start of a new DC. This is the 2nd DC of a new Intermediate cycle.
Today is day 1.
Silver also formed a swing today. However, it did not close over the swing. Let's see if tomorrow shows us a further increase in price giving us a "true" swing.
If infact this confirms a new daily cycle for silver as well, today is day 3.
This was day 3 for the dollar's new daily cycle. Today's action in the dollar was sold as it broke through the declining daily cycle trendline. I'm anticipating a left translated cycle here.. as we begin to move closer to the timing band for an IC low.. and yearly low.
A new daily cycle will be confirmed in GDX as soon as a break of the declining daily cycle trendline is broke. Today was day 2 of this possible new DC.
Of note..
There were heavy buys on Mar '13 GDX calls today. The first was a purchase of 5,000 contracts at the $41 strike. The second was 10,000 contracts for the $47 strike, and the last was 5,000 contracts for the $51 strike. Now that I look at it more, perhaps this is some type of options/spread strategy. Regardless, I have never seen such high volume on GDX for the last couple of years that I have watched it.
Good Trading!
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