Its been a while since I last updated the GDXJ junior gold stock index. Of all the precious metals stock indexes this index has the nicest looking bearish falling wedge pattern which has been trading below the bottom red rail for 6 days in a row now. Also the blue 5 point triangle reversal pattern is the cleanest of all the PM stock indexes to.

Lets now look at an 18 month daily chart that puts the above patterns into perspective. If you recall when the double bottom was complete and the price action broke above the double bottom hump it looked like, at the time, that we were well on our way to a nice big rally for the precious metals stocks. You can see the nice breakout and backtest to the double bottom trendline or the support and resistance rail, S&R rail, that showed everything was a go. After a week or so of rally the GDXJ began to correct, top of blue 5 point triangle reversal pattern. Even at that point everything still looked good as it was about time for a small correction. As the correction wore on the GDXJ couldn’t make any higher highs inside the blue triangle but the bottom blue rail held as support. Still this was a fairly normal correction. Then the breakout to the downside hit with a vengeance and in just 2 days the bottom rail of the blue triangle and the S&R rail were broken to the downside. That was a key technical failure and when we got our little backtest to the underside of the S&R rail that is where I put the model portfolio back into cash. I hated to do it but the breakdown left me no choice. Now what we have is a bearish setup with one pattern above the S&R rail and one below.

Next lets look at the weekly chart that is showing just how weak this junior index is. You can see our two pattern from the chart above, the blue triangle and the red falling wedge. We are not that far above the all time lows that formed back in May of this year.

Normally when the precious metals stocks are in strong uptrends one likes to see the juniors outperforming the big caps as that suggests money is flowing freely and investors want to to take more risks so they bid up the juniors. Below is a ratio chart that compares the GDXJ to the GDX that is showing the junior mining companies are now rolling over to the downside after hitting resistance at the brown shaded area. This is not a healthy sign if you own the precious metals stocks.

Thanks for those kind words Fully.

When we opened the doors to the Rambus Chartology site a little over a year ago we were as green as the grass grows. We didn’t know what to expect or what kind of problems we may encounter along the way. All we knew was that we wanted to create a website that would compete with best  websites out there. We have come along way from day one as the hits to Rambus Chartology has increased dramatically over the course of the year.

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There is alot of behind the scenes work that goes on each day that nobody really sees and that is the way it should be. Your experience here should be full of information that is easy to find.

First, I would like to thank my editor Sir Fullgoldcrown who has done a masterful job of keeping our site updated and easy to follow. Without his input things would go downhill pretty fast. He has a great sense of humor that keeps us all in high spirits.

Next, I would like to thank audept who actually created our website from scratch using his vast knowledge of computers and how the internet works. He is constantly doing updates and things behind the scenes to make our site faster and safe.

Next my wife whom some of you have communicated with about your pay pal accounts that were having some trouble. She also understands the amount of time I spend each and everyday analyzing charts so I can paint a picture for you on what the markets are telling me. Without these three energetic people Rambus Chartology would not exist. So I thank you from the bottom of my heart for all your hard, behind the scenes work, that keeps our website up and going at full speed.

Lastly I want to thank each and every subscriber who has paid with your hard earned money in hopes of making it grow. I just want you to know that I will always have your best interest foremost in the front of my mind. I will always tell you what the charts are telling me even if its not what you want to hear.

I would like to wish everyone a Merry Christmas and a healthy and prosperous 2013….All the best…Rambus

I just want to Say Thank you for your Incredible work as of late. Your Market Guidence has been Invaluable

Merry Christmas to you and your family

I truly believe we are priveleged to share your market wisdom here at Rambus Chartology

As You Know most Weekend reports are made available to the Public a day or two later

But This one… “Silver and its Diamonds”…. is too good to share

It will for now be kept only for the eyes of those who have showed thier appreciation of your work and have subscribed

a Christmas Present for The Eyes of Subscribers Only

Merry Christmas and Best Wishes for a Prosperous New Year to all Chartologists from around the Globe

Humbly

Fullgoldcrown