GLD/GDX Broad Update & Quick Market Update

I think I have time for this post, although I'm trying to keep a close eye on market action, I see we have a 5 min SPY positive finally.

I suspect I have enough time for this post because I suspect the market will likely look something like this ahead of tomorrow's F_E_D minutes...

What we are looking at on this QQQ 3 min chart is the "Reversal Process", the mechanics of it which we've talked about several times aren't really that important, but understanding that a reversal in any timeframe is almost always a process rather than an event is important. The 3C accumulation/positive divegrence is important to confirm what we are looking at.

I think I have time for this post because in looking at the 3 min chart, although it is leading positive in the white box, there is a small set of relative negative divergences in the white box. The Leading divergence is much stronger than the red arrows or relative divergences, but they are telling us something about intraday trade and I think that is that this process is not done and QQQ prices are likely to come down toward the bottom of the base. It's still a "W" shaped base, but larger.

Although I don't want to get too much in to the subject in this post, another thing I think we are looking at (unless the minutes are leaked and this is the set up for them which is entirely possible as we've caught the F_E_D red-handed leaking the minutes to 154 private equity and other large Wall St. firms a day in advance of their release) is that the Q's just moved to stage 4 like the IWM had on 3/26. Do you remember what happened? The same volatility shakeout concept we have for a H&S top when its neckline is first broken to the downside (another form of stage 4), the IWM ran the shakeout of new shorts and moved to a new lower low for the Feb. cycle. I think the Q's are moving toward the same as they have officially broken to stage 4 and this set up looks like a volatility shakeout- see the IWM for how it ends...

As far as GLD and GDX and why I closed them in the trading portfolio (so I can use the assets elsewhere for the time until it's time to re-enter them)...let me get this much out and then I'll put it in the next post.