The GPS Engine vs Resource Markets (Updated)

 "The countdown for this major launch will likely take considerable time and distance to succeed." TG

The resource market continues in a bear trend. But there is evidence this continuing downside journey will end.

Current Leadership Issues

Current upside leadership is lacking while leading the way over the ledge. This is clearly demonstrated in NEM's advanced GPS trend chart below. 

Click chart to enlarge

(Historical GPS examples under "The SAR - Plain & Simple" here)

Illogical Logic

A little over a month ago we noted:

• "No amount of alleged positive seasonality trends, moon shot forecasts or other nonsense will save the day." 

However, we still have calls for a resource sector bottom any day now for various reasons, largely fundamental. 

Agree, this sector is mostly ignored, overlooked and forgotten. Undervalued, of course, but these conditions can go on far longer than one's resources or patience.

We also have numerous calls for a major S&P500 crash soon. If that event were to occur (zero mathematical evidence right now), it would drag the resource market down too.

We can all moan, groan and complain until the cows come home or we can sit on the sidelines until a new daily trend emerges. 

The GPS will help identify that trend.

Resource Market - Good News

As I told several people recently, "Longer term (once we bottom), it's my strong belief that the next 3-5 years will be truly exceptional".

I expect both a positive daily and weekly trend to be in place by early 2022. The GPS engine will help handle those assignments.

9/11/21 (Chart updated 10/2/21)

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A Christmas Treasure

In early September, we noted that NEM's daily chart demonstrated a strong daily downtrend in the TDI and GPS indicators. This was within the context of a negative weekly and monthly trend as well.

NEM did achieve short term positive daily trends in October and November but these failed. Failure is always an option in this configuration context. 

It's one thing to achieve a new daily trend but one must have a new weekly trend in place to really get things going. Why? 

It's the primary "steering mechanism" for longer term trends, acting as initial resistance to any daily advances and later, support on retracements.

NEM Weekly Chart

So why did the daily trend fail?

As you can plainly see in NEM's chart below, the TDI/GPS arrowed weekly resistance near 59 was the reason for the daily's failure.

Click chart to enlarge

A Christmas Treasure

Since NEM is negative in all primary time frame trends, all is lost and we should quietly head over to St. Elmo's train station, as they did precisely 100 years ago. Right?

Not exactly and this will be the subject of a follow up down the road.

In the meantime, read the complete original article above.

A Merry Christmas to all!

12/12/21 (updated)

Related: Simple Trading Logic