David Tablish | Dec 11, 2013 06:14PM ET
Tonight I would like to update some of the Diamonds that have been in play for several months now. Chartology is giving us an edge over most of the other technical disciplines out there , in that it has been showing us the way lower to a T. Nobody but Rambus Chartology folks are seeing the precious metals stocks from this angle that got us short, for the first ride down, one year ago during the first impulse leg down. It was in the first week of December of 2012 that we took our first DUST position and added to it from there until the Kamikaze Portfolio was full. Here we are one year later and we have the exact same setup staring us in the face. This time we are one step ahead of the game by being fully invested in the Kamikaze Portfolio before things broke down.
I have described to you how hard it is to get your initial position to stick before you may get stopped out. Just think of an impulse move as two steps forward and one step back. If you wait and buy in the second step, because it feels more comfortable, you will find yourself underwater at some point which makes it difficult to hang on even though you are right taking a position. It’s that step back that gets a lot of investors in trouble. Yesterday, I noticed a couple of red quotes, amongst the sea of green, where we had entered the last of our positions in the Kamikaze Portfolio. This week was the step back. If you had bought back up inside the Diamonds, you felt some pain, but not the kind of pain if you had bought your stock in the last three weeks or so after the breakout. Your emotions will start to kick in and you will question if you’ve made the right decision.
So lets look at some of the Diamond formations and see how they have showed us the way lower, while most investors don’t have a clue to what is actually happening in the precious metals sector. They keep looking at everything but the price action which is the most important aspect to making money in the markets especially in an impulse move, IMHO.
The GDM daily chart shows us its beautiful Diamond consolidation pattern which is now in its fourth week down from the breakout.
As I have stated many times in the past, the big money will be made by those that can control their emotions, and not jump ship every time a wave hits. This is an epic decline taking place in the precious metals stocks that you just don’t see everyday in any market. If one can play this move correctly it can be a game changer in ones life but it’s going to take discipline that most don’t have. All I can do is show you the Chartology and the rest is up to you.
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