This is a stand alone excerpt from tonight’s Wednesday report.

Tonight I would like to start out by looking at the $CDNX, Canadian Venture Composite Index, which blasted higher last week and is following through this week. The reason this index is so important is because it not only has many junior precious metals stocks, but also many small cap energy related stocks as well as other speculative venture capital stocks from other sectors. This is a very good sign for the overall stock markets and commodities in general, as it shows risk capital is finding a home in which to park. This is another important clue that there is no top in the stock markets yet, because the risk on trade is still healthy.

CDNX Companies ftp://ftp.cdnx.com/SPCDNXIndex/Constituents.txt

This first chart for the CDNX is a daily look which shows an eight month H&S bottom in place. This chart shows the principal of Chartology at work. Remember a stock does one of three things. It is either building out a reversal pattern, a consolidation pattern or is in an impulse move. After eight months of base building you can see what happens when all the energy is released. There was no way anyone could have predicted that the current impulse move would start out like this one, but we did know that an impulse move would take place once the neckline was broken to the upside.

I have shown you many examples of how a big pattern can be made up of smaller patterns before a pattern is completed. Below is another daily chart for the CDNX that you should be familiar with which shows the nearly one and a half year flat top expanding triangle consolidation pattern. Not only did the price action breakout above the neckline, but also the top rail of the large triangle consolidation pattern. The bears were so exhausted they couldn’t defend the neckline, let alone the top rail of the flat top expanding triangle. A backtest, if we get one, would come into play around the 850 area.

This next chart for the CDNX is a long term weekly look which helped me find the top, back in late 2007. At the time, I called that huge trading range anything you wanted, because there were several pattens that could work out. The bottom line was, whichever way the price action broke out, a big move would follow. Keep in mind that was at the height of the bull market up until that point, and no one wanted to believe that big trading range could be a top.

The big clue came when the small red triangle formed on the right side of the trading range. Until it broke down I still couldn’t say with any confidence which way the big trading range would breakout, but once the price action broke below the bottom rail of that red triangle the writing was on the wall. Again, there was no way to know the magnitude of the collapse only that an important top was in place and an impulse move to the downside would follow. This was also about the time I had to quit posting at the original Goldtent because so many gold bugs were getting angry with my bearish posts.

The CDNX is a good producer of chart patterns as the monthly chart below shows. Our current triangle consolidation pattern has formed just above the 2008 crash low and is now making a multi year high.

I believe the breakout on this chart is potentially very significant for all the markets we cover here at Rambus Chartology.

All the best

Rambus

Rambus does not use a Portfolio Tracker. He Probably Should.

Here are his present Open Positions in the Leveraged Trade Portfolio.

These trades average $5,000 to $10,000 each. These are  3x leveraged ETFs based on the various market sectors covered by Rambus.

These trades were put on in the second half of this year. Many others were booked earlier in the year…………

Per Anum % Gains are for academic purposes only…this would be the % gain after 1 year if the rate of gain continued…which of course is very unlikely.

……………………………………………………………………..

CURE …(HEALTHCARE)………..Year End Price…..% Gain/Loss……….% per Annum

1…45.67 ON 9-7-17………………..46.60…………………2%……………………..6%

2…45.66 ON 9-20-17……………….46.60……………….2%………………………7%

DRN….(REAL ESTATE)

1…23.70 ON 11-8-17……………….22.84……………….- 3%……………………-18%

2…24.35 ON 12-18-17……………..22.84………………-2%……………………..-24%

EDC (EMERGING MARKETS)

1…97.44 ON 7-8-17………………..125.74………………29%…………………….63%

2…110.84 ON 9-11-17…………….125.74………………13%…………………….44%

ERX ( ENERGY)

1…26.08 ON 9-13-17………………34.93…………………34%……………………117%

2…30.34 ON 11-3-17………………34.93…………………15%……………………90%

FAS (FINANCIALS)

1…52.57 ON 9-18-17………………68.38………………….30%……………………103%

2…53.30 ON 9-27-17………………68.38…………………..28%……………………112%

INDL (INDIA)

1…81.75 ON 7-10-17………………102.10…………………25%……………………120%

LABU (BIOTEC)

1…50.75 ON 6-8-17………………..77.85……………………53%……………………91%

2…79.19 ON 9-7-17…………………77.85…………………..-1%…………………….-3%

3…81.07 ON 9-20-17………………..77.85………………….-4%……………………..-10%

MIDU (MID CAPS)

1…43.24 ON 11-16-17……………….46.43…………………..7%…………………….60%

RETL (RETAIL)

1…27.65 ON 9-15-17………………..36.04…………………..30%………………….103%

2…26.76 ON 9-20-17………………..36.04……………………40%………………….145%

RUSL ( RUSSIA)

1…50.40 ON 12-15-17……………..54.48……………………..8%…………………..192%

SOXL (SEMI CONDUCTORS)

1…97.04 0N 8-30-17…………………137.90………………….42%…………………..126%

2…98.57 ON 9-7-17………………….137.90………………….40%……………………95%

SPXL ( S & P 500)

1…37.22 ON 9-12-17………………..44.33……………………19%…………………….65%

2…38.60 ON 10-2-17………………..44.33…………………….15%……………………60%

TNA ( SMALL CAPS)

1…56.31 ON 9-12-17………………..70.27……………………..25%…………………..85%

2…63.31 ON 9-27-17…………………70.27…………………….11%…………………..44%

TQQQ (LARGE CAP TECH)

1…115.18 ON 9-12-17……………….138.72………………….24%…………………..82%

2…118.14 ON 10-5-17………………..138.72…………………17%…………………..70%

UWT ( OIL)

1…23.01 ON 6-1-17…………………..34.02…………………….48%…………………82%

2…27.54 ON 8-22-17…………………34.02……………………24%…………………..68%

UYM ( BASIC MATERIALS)

1…61.13 ON 7-19-17…………………74.05…………………….21%………………….45%

YINN ( CHINA)

1…23.01 ON 6-1-17………………….34.02…………………….48%…………………..82%

2…27.54 0N 8-12-17…………………34.02……………………24%…………………..62%

HAPPY NEW YEAR  RAMBUS CHARTOLOGY  MEMBERS

I HOPE MOST OF YOU TOOK MANY OF THESE TRADES….AS WELL AS THE TRADES WHICH HAVE BEEN CLOSED EARLIER IN THE YEAR AND THE TRADES IN THE LESS VOLITILE PORTFOLIOS.

ALL THESE OPEN POSITIONS ARE LISTED ON THE SIDEBAR INCLUDING TENTATIVE SELL STOPS. THEY HAVE NOT BEEN UPDATED TO YEAR END PRICES YET.

ALL THE BEST IN YOUR CONTINUING QUEST TO PROFIT IN THESE VARIOUS MARKETS IN 2018.

HAPPY NEW YEARS MR AND MRS RAMBUS

FULLGOLDCROWN

Excerpt from Rambus Weekend Report. “Gold Ratio Charts Update”

Editor’s Note : This is an important point that deserves its own separate post.

………………………………………

This next set of ratio charts I consider to be the most important ratio charts if you are deciding whether to be an investor in the INDU or in Gold.

When the price is rising The INDU ( Dow Jones Industrial Average ) (a proxy for General Stock Markets) is rising against Gold , and when it is falling Gold is rising against the Dow.

This first ratio chart for the INDU:Gold is a daily look which shows the ratio breaking out above the top rail of a bullish rising flag with a completed backtest. It doesn’t look that impressive on a daily chart, but when we look at the longer term ratio chart it becomes very important.

Below is a long term 10 year weekly chart which shows a massive H&S bottom on the ratio chart on top and a possible massive H&S top on gold on the bottom chart. Note  how the blue bullish rising flag formed just below the neckline on the ratio chart which has given the ratio chart the energy it needed to finally breakout. I’ve been showing this ratio combo chart for a long time now so the breakout above the neckline is falling into place.

Below is a 38 year daily line chart for the INDU:gold ratio chart which puts the very big picture in perspective. This ratio chart tells you when you need to be trading in the INDU and out of Gold and visa versa. As you can see you wanted to be trading in the INDU going into the 2000 bubble top and out of gold. In 2000 that all changed. From that point forward you wanted to be trading in the PM sector staying away from the INDU.

There are many gold investors that swear that the ratio has to go as low a 1 to 1 before the gold bull market is over. As you can see the ratio got as low as 5.5 in 2011 which is close enough IMHO especially since the price action that followed that double bottom low. There is a massive H&S bottom with the breakout underway. We have a very clear line in the sand for the staunch gold bulls which is the neckline. As long as the price action trades above that neckline the INDU is going to outperform gold.

As the breakout is just now taking place this ratio could rise for many years to come regardless of all the reasons it can’t. I will have no problem reversing my stance if I see the neckline is broken to the downside, but until it is I have to give the ratio chart the benefit of a doubt. All the best…Rambus