With precious metals still leaning on the weaker side, the related miners followed. The gold
miner ETF of GDX ended the week on a negative note, -0.7% at $22.43,
resulting in a third consecutive net weekly decline of
-0.6%. Near term outlook is bearish.
GDX weekly
GDX daily
Summary
*Gold settled lower for a third week, with Silver settling moderately higher. --
The related gold miners are struggling. Regardless of the past few weeks, broader price action is choppy, with GDX remaining firmly stuck under the Feb' high of $25.71.
The 'cautious' will leave this sector alone, until a decisive break into the $26s. From there, it would be open air to the summer 2016 high of $31.70. Based on copper, oil, and a few other aspects, I expect an eventual upside break.
Tesla (TSLA) saw Q3 earnings far worse than expected, with the stock duly whacked (intra low $292.63), settling -6.8% at $299.26. Near term outlook is bearish, as the 280/70s appear briefly viable. The m/t trend is still bullish, and would only turn bearish with a monthly close under $280.
TSLA daily
TSLA monthly
Summary
re: earnings. Q3 EPS was -$2.92, even worse than consensus.
Lets be clear, the company is a cash hungry monster, as its still in the early phase of a massive production ramp for the Model'3. Even CEO Musk predicted the current 'production hell'.
Technically, you can see via the monthly chart, how the $280s are very important. The $280s used to be resistance until a breakout in April. Now they should act as support.
To be clear, any monthly close under $280 would be exceptionally bearish, and offer downside to the 200/185 zone. This is interestingly close to Goldman Sach's new target of $205.
For the record, I do NOT expect such a bearish monthly close. Instead I expect some weeks of chop, but then rebounding on the semi-truck reveal, due within 3-6 weeks.
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In many ways, I just wish Elon would stick to rockets...
Even if you have little interest in the public or private space program, the following short video is rather important to see...
The December launch of Falcon heavy will be a massively important event.
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The following is from two years ago, but it gives credence to the notion that Musk is someone to take seriously...
Yours truly does indeed consider Musk a visionary. I hope Tesla can push forward and solve its production issues, if only to take some of the pressure off the guy!
Q3 earnings for US Steel (X) were fine, with the stock jumping at the open (intra high $29.33), and settling +7.8% at $27.30. Near term outlook is for some chop. Mid term outlook is bullish, with first soft target of the $31s, and a grander target of the $40 threshold.
Suffice to add, earnings were unquestionably 'reasonable'.
Technically, today's settling black-fail dual-spiky daily candle is messy, as the stock is trapped within multiple price thresholds.
To be clear, short term price action could be pretty choppy, and lean weak. Mid term looks fine though, and US Steel's Q3 was in stark contrast to AK Steel (AKS).
