Precious Metals & General Market Review

September 2016 Issue #352.b

10-9-16

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"Yen-Job"
Golds getting hammered in front of the Japanese Yen, and gold likes to bottom first. Gold also
likes to get spanked during October.
Golds getting spanked.

Where gold will bottom nobody knows, but my guess is somewhere between $1200-1250.

Last weekend I figured that channel would hold, but this weekend Im not as positive. More than
likely, gold will challenge its 300-day simple moving average.

Rates are rising, the Yen is falling and golds falling with the Yen.

So far, this year, the Japanese Yen has been riding the 90 day exponential moving average
upward. Despite recent weakness, perhaps the Yen may recover and continue upward.
Well have to see.

THAT FREAKIN BEAR IS STILL GROWLING.

Gold has yet to break up thru bear market resistance. The next test ahead is to see if the rising 65
week simple moving average will hold as supportor not.
Relative strength is still a ways away from hitting 30.
$1200 looms large.

Gold tested its rising 65-week exponential moving average last week, but I do not think it will
hold as support. I think theres more downside coming.
New bull markets start like this one did, but I am significantly disappointed that gold did not get
up into the $1400s yet.

From a daily close perspective, it looks more like $1211 is on deck before the D-decline
completes, if not even a visit into $1175 to really shake things up.
Gold falls further than one thinks and not as much as one thought Thirdeyeopentrades
Gold can continue to fall in daily closing price beyond the RSI bottom by a couple weeks
(note December 2015). I imagine that the RSI ought to bottom soon, if not having done so on
Friday.

I think golds close to bottoming, one more

SMASHING ought to do the trick.

In relation to the S&P 500 Index, gold stocks did not make the bull crossover. They failed. From
encouraging to discouraging.

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The bullish percent index for gold stocks is quite oversold but could fall further before bottoming
out.

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GDX derives off the Gold Miners Index. Well have to see if the bullish percent drops into zero
again. The good news is that its much closer to zero than one hundred.

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I am concerned about gold stocks. A 17/34 week exponential crossover could be fatal. But a fairly
rapid continuation down into $20for GDX and a quick recovery upward from that might be able
to avert a bearish crossover.
I would have preferred to see the rise up off the 2016 low continue all the way into the mid-$30s
or higher, up off the rising 34 week EMA, before the sector correction underway.
But we get what we get in this market.

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The D-decline continues, but it should end sometime this month, I think. After all, its two
months old.

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I took profits on the rise into $0.17 and replaced those shares on Thursday. See how it goes.

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With a stop order placed under $0.55, Eastmain looks good inside the upper to mid-$0.50s.

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Are biotech stocks ready to bounce next week?

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Market volatility has been pretty subdued for some time. Although Chaikin Money Flow is
falling again, there is a longer-term positive divergence present.
Perhaps once the election is over with, things could get messy. Well keep an eye on this.

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Utilities continue to do well and are correcting back toward moving average and trend line
supports.

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XLE continues to climb upward off its rising 30-week exponential moving average as oil price
recovers.

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Semiconductors came within pennies of hitting the Thirdeyeopentrades price target last week.

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The long term monthly Dow chart sports a rising bear wedge in the presence of significant
negative relative strength and MACD divergences.
Thats an early warning sign.

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The Coppock curve continues to deteriorate, another warning sign.

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The monthly closing price remains above rising supports.

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Transports remain above 65 week moving average support.

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Oil price continues higher.

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The $NASI indicator speaks caution for the Nasdaq Index with a pronounced negative divergence
between it and the rising bear wedge in price.

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Natural gas price took off last week.

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The dollar, as represented as UUP, climbed up thru Andrews Pitchfork resistance last week.

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The dollar may challenge 99 in the months ahead. If so, well have to see if that caps the advance,
or if it will continue onward and upward.

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From one bubble to the next. When will this one burst?
Thats all for this weekend. Have a great week!

Thirdeyeopentrades wishes you Health, Wealth, Wisdom and Happiness!

Thirdeyeopentrades is not a registered financial advisory service and is not a broker dealer. We do not and cannot give
individualized market advice. The information in the newsletter is only intended for informational and educational
purposes. It should not be considered a solicitation of an offer or sale of any security. The reader assumes all risk when
trading in securities and Thirdeyeopentrades advises consulting a licensed professional financial advisor before
proceeding with any trade or idea presented in this newsletter. Thirdeyeopentrades may take a position and sell a
position in any security mentioned in this newsletter. We share our ideas and opinions for informational and
educational purposes only and expect the reader to perform due diligence before considering taking a position in any
security. That includes consulting with your own licensed professional financial advisor.

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