Daily Archives: December 20, 2016

The Inchworm Cometh

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I didn’t manage a post in RTH today, but I thought I’d use this opportunity to do an after-market post looking at the strong resistance that is (very slowly) being retested here on RUT and TF, and to review the shorter term setups forming as the market vaguely meanders towards those retests.

On RUT the original rising channel expanded by a third into a new channel. This also intersects longer term rising wedge resistance on a pattern from the 2009 low. This is formidable resistance and I’m assuming this holds until demonstrated otherwise. I’d note here that while wedges and megaphones routinely overthrow at highs, channels tend not to. RUT daily chart:

161220-C RUT Daily

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A Deep Shaft

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I was amused last night to discover that I was pointed out by no less a person than Peter Schiff on no less a network than Reuters as to being “totally wrong” about my grim views of gold. Well, as almost always seems to be the case, just about the only asset in the red this morning is – yep – gold. We got a little two day respite (Friday, Monday), but it’s back to its old stinky ways.

I have no doubt there will be a bounce at some point………..perhaps even a hearty one………but the damage is vast. Just one look at the gold and silver index, and I think you’d agree that 2017 is going to plumb much vaster depths (for miners in particular) than precious metals bulls want to conjure.

1220-gdx