Another day, another gap up!
On a weekend post about AEM, I expressed the possibility of AEM being pushed through some resistance levels. I did not expect a 10% push. But I take it, thank you.
AEM is in an uptrend confirmed by OEW criteria. Gold is in an uptrend confirmed by OEW criteria. AEM has been leading gold. This is the big picture to me at the moment.
Let's look at the daily chart
AEM is finally registering some overbought readings on the daily chart, and daily MACD has climbed above zero. So, technically it’s been laying the grounds to go higher.
Short term, it is really overbought, and there may be a pullback. I really did not want to give away the morning run up in price. I also posted during the day (I seldom do such things), and that proved to be the top of the day. Hey, even I get lucky sometimes. I assure you I have no crystal ball, no insider or market specialist gives me tips, and I definitely am no guru – just luck.
As things stand now, I will be very careful on the short side, and cautiously eager on the long side. But, first, I need a pullback to see how the sellers sell, and how the buyers buy.
Near term waves can be counted so many different ways because of all the 5-wave advances in the pattern – we’ve had three. I have stacked some alternatives. My hunches tell me what we have from the lows of October 27 is corrective. But I shall be open to positive developments if they occur. The goal is to make money, not to prove a point
I decided to take a look at GG and GDX for a possible calcification in the short-term wave count
This is 60-minute Goldcorp
So, I will stay with the bigger picture, and trade using short term trend lines, directional waves and oscillators.