With all due disclaimers about FOMC week and gold’s bearish CoT structure, we note the following gold miner pullbacks on daily charts. With reference to the minor support level of 19 noted in an update on GDX yesterday (HUI 160-165) and the possibility that short-term support could be found there…
NGD hit its equivalent support at around 3.40.
SSRI has dropped to the NFTRH+ ‘look ahead’ area at around 5.25.
PVG is at the SMA 50 and still in a series of higher highs and higher lows off the bottom.
SAND is trying for a higher short-term low at the EMA 20.
Just a few perspective pictures for those interested in gold miners. I’ll leave you with the updated GDX chart from yesterday’s update.
I have added a couple of these items today, but have also at least temporarily reinstituted a short on 3x miner bull NUGT against which to add these items. Please use whatever strategy works best for you, including non-participation if the current risks are not deemed acceptable. Indeed, I think that given the risks, that is a sound course of in-action unless you are looking to slowly buy pullbacks over time, taking small steps or are a day trader simply trying to guess the next short-term move (GDX key short-term support and ‘stop loss’ to that thinking is 19; keep that in mind).
A subscriber asked why I would be short and long the same asset class at the same time and the answer is that as always, I do not seek to be a day trader in my primary motive. I seek to position. In choosing not to release GDX, KLDX, SAND and PG.TO I was maintaining some positions after selling others. In adding a couple more I now seek balance once again with the idea that it will be a long year and Rome is not built in a day (trade).
The other note is that like dynamic markets, my entire stance could change if the market shifts away from the current stance. So again I ask you, if you are even interested in the gold stock sector, to take the above for reference and do what works best for you. The gold community right now is an unholy mix of those expecting ‘to da moon!’ and those expecting a correction or bear market resumption (due to CoT, FOMC, etc.). The latter thing is the reason I give GDX a chance at new highs as improbable as it sounds.
