From Bloomberg:
“U.S. stocks retreated, with the Standard & Poor’s 500 Index falling a third day, as airline stocks tumbled after escalating violence in Iraq pushed oil prices higher while data on retail sales and jobs missed estimates.”
You know my feelings about geopolitical strife and the precious metals. I don’t like it and I like even less any analysis trying to use this as a fundamental underpinning.
Here is the daily chart of GDX, as a companion to the weekly shown earlier. Resistance #1 is dialed in on and as you can see, it comes at the top of a daily Bollinger Band line whereas on the weekly it was at the mid point of the BB’s. That’s pretty good symmetry over 2 different time frames.
RSI has gone green, MACD triggered and GDX is not over bought. So understand that I am not calling a top here but just reaffirming for those not simply buying and holding, that if GDX comes up to one of our resistance points and at least some of the thrust was due to this Iraq tension, a reaction is to be expected.
So if you are a trader you might think about taking some profits. It has been a good bounce from the ‘HUI 205’ parameter (GDX 22).
