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As for me, I have learned from many years of experience with metals not to automatically discount a major move in the metals if there is a reasonable interpretation for one. While the diagonal Zac and Garrett are tracking is quite reasonable, and supported by quite a few mining charts, I am giving the market room to blow out to the upside to confirm the more bullish standard impulsive count I am tracking in green on my daily charts.
Again, based upon experience, if I were not to view the metals’ potential break out directly higher as my primary count, and it fulfilled, then many would be left at the station as the train leaves. So, until the market proves to me that it is not going to break out directly in the heart of a 3rdwave (which still has a very reasonable probability of following through), I am going to remain on this train. Moreover, I have identified what action I would need to see to adopt my alternative count.
So, if the market does break down into the diagonal, then it just provides more opportunity to play the long side, and I will not have missed anything. But, if the market were to blow out to the upside while the great majority of the members were looking for more of a pullback from my analysis, then there would have been a major opportunity we may miss. But, allowing the market to PROVE the bigger pullback before I adopt it does not have us missing any upside.
Yet, the key here is that I am not suggesting any leveraged positions at this time. If the market were to not break out and prove to see more of a pullback, only those with leverage would be hurt. So, as you know if you have been following me, I stopped out of my leverage positions when GDX broke below 25.90, and am simply holding my core positions. Should the market prove to break out further in the parabolic potential on my daily charts, then there will be another opportunity to add leverage on the wave iv pullback/consolidation.
So, if the market will break down one of our supports over the coming weeks, then it would leave me watching the patterns outlined by the Stock Waves analysts in the video cited above. Yet, both are clearly quite bullish structures for the coming months.