Traders, Start Your Engines

Big Picture

The dollar is within a hair of violating its 80-day cycle support, which opens the door to a cascade lower through April, with likely consolidation until June, after which a resumption of its established downtrend is probable.

Silver has moved decisively through its 20-week cycle resistance and is bound to consolidate above support at $22 while its 20- and 40-week cycles are sideways and down respectively until the end of January, after which time, I expect strong moves upward with an interim peak in mid-April.

Gold has the jump on silver with important piercings of 20- and 40-week cycle resistances with only minor short-term headwinds posed by selling at the upper-bound of its 40-day cycle. I expect sideways-to-up movement through March when a door opens to a pronounced impulse peak by mid-April, then likely consolidation until early June, and a resumption of its established uptrend.


I spent December buying beaten-down juniors, including Gold Resource Corp., Impact Silver, Lucara Diamond Corp., Paramount Gold Nevada, Pure Gold, and Steppe Gold, all of which have experienced extreme selling and which enjoy the advantage of bottoming in multiple cycle-frames, including the key 18-month cycle.

I bought back a small stake in Coeur Mining, as price has pierced the lower-bounds of its 80-Day, 20-Week, 40-week, and 18-month cycles. With Coeur, the 20-week cycle is emphasized here at FCM and a strong buy signal flashed on 12/15/21.


I’m holding onto my remaining 2/3 stake in Deep Yellow, as stock illiquidity has proven a hindrance to an active response to price action. Without telegraphing my intermediate-term strategy, I foresee a grind sideways with a brief opening to the upside in early March followed by yet more resistance in April. If, however, Deep Yellow is able to work off overhead supply and crack above its 20-week cycle resistance in the spring, it may enjoy a summer of blue sky.

Absent the detonation of a tactical nuke over Natanz, this space has no near-term catalysts and I fear the best exits may have passed.

Good luck, and may God be with you!

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