“The fluctuation of a stock’s price is roughly proportional to the square root of its price.” Sir John Templeton
It’s easy to get into a stock that’s ramping. The trick is knowing when to exit.
As a fellow trader says, “ride the tiger, fear the dismount.”
In 2024 we forecast GLD would rally to the 327 region.
The breakout in August extended that projection to the 370 region.
Let’s take a look at how that forecast was made using the Principle of Squares and the Square of 9 Wheel.
GLD struck a low of 150/151 in October 2022 with a closing weekly low of 153.
The last leg up started from a 301 low in July 2025.
3 1/2 price cycles (1080 degrees + 180 degrees) up from the October 2022 low is 374.
360 degrees up from the July 2025 low of 301 is 374 as well.
When we get a confluence of price targets there is a strong likelihood of a reversal.
Notice Thursday morning GLD produced the 3rd point in a 3 point Tops Line.
The synergy produced the largest one day decline and the largest down volume since at least the April high which generated a 4 month consolidation..
The Square of 9 Wheel image below shows how 153 (red) and 301 (blue) squares out with 374 (green).
Let’s take a look at GDXJ.
We have been warning of a reversal from 105 this month in GDXJ.
900 degrees (720 degrees + 180 degrees) up from the major September 2022 low of 26 is 103.
At the same time 106 is opposite October 9 for a potential Time/Price square-out.
In other words Time and price aligned.
Notice that GDXJ hit the top of a Trend Channel as Time and Price aligned Thursday morning producing a large range Key Reversal Day with GDXJ dropping from 105.24 to 98.44.
Amazing.
SLV struck a major low at 26/27 in April 2025.
October 9th squares-out with 26/27 producing a potential Time/Price square-out with the low price vibrating off October 9.
As well 45 squares-out with Oct 9.
SLV Pinocchio’d 45 briefly Thursday morning then reversed with authority to a low of 42.80.
Remarkably SLV rebounded sharply from its mid-day low to close mid-range at 44.70.
Taken together, Time and Price relationships n GLD, GDXJ and SLV intersected on Thursday after a vertical run indicating a reversal which is why we warned of a rug pull in the metals in Thursday morning’s Hit and Run report.
Place picture of Sq of 9 Wheel here