Not so fast folks. Per an NFTRH update this morning GDX is not yet indicated to be correcting and I sold my DUST positions (sorry, I did not make a public announcement as I did with the NUGT short; this is cracked out day trader stuff and I am not obliged to publicly note everything I do) and took the profits rather than testing this thing (GDX) for more downside.
Just as with covering the NUGT short last week, these leveraged bets are best managed so that when you get profit, you take it lest you lose it (at least in my sometimes ignominious experience). It doesn’t hurt that my long positioning is light, so there is no stress.
Here is GDX having dropped to the 1st projected (minor) support level at the EMA 20, a small Triangular consolidation and a small lateral support cluster of activity. Daily MACD looks like crap, gold’s CoT stinks… and this, and that and the other thing as well!
Point is, I took the profit and don’t really care which way this consolidation breaks. A loss of 19 and I’ll consider shorting again, while looking to add key miners from my watch list at better support levels, which we have laid out. Another burst upward? No harm, no foul either. This is a market to be balanced in, not making big, heavy leaning bets in. In selling DUST I got a little less balanced, but profit is profit and it is being retained either way.
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